A reward function is a crucial component in blockchain networks that incentivizes participants for their contributions. It typically involves the distribution of tokens or coins to users who perform specific actions, such as validating transactions or maintaining the network.In proof-of-work systems, miners solve complex mathematical problems to add new blocks to the blockchain. They receive rewards in the form of newly minted coins and transaction fees for their effort. This encourages them to invest computational resources into ensuring the network’s security.In proof-of-stake systems, rewards are given to users who lock up their coins to support network operations. The more tokens a user stakes, the higher their chances of being selected to validate transactions, with rewards distributed accordingly.The design of the reward function is essential for maintaining a network’s health and encouraging participation. It must balance incentives to prevent malicious behavior while ensuring sustainability and growth over time. Ultimately, a well-structured reward function helps establish trust and security within the system.