A Reward Protocol is a set of rules and mechanisms used by blockchain networks to incentivize participants. It determines how rewards are distributed to users who contribute to the network, such as miners or validators, for their efforts in maintaining the system’s security and functionality.These rewards often come in the form of newly created coins or tokens, transaction fees, or both. The protocol outlines the specific conditions under which rewards are earned, such as completing a block of transactions or validating a transaction. Different blockchains can employ various reward models. For instance, Proof of Work systems reward miners based on their computational power, while Proof of Stake systems provide rewards based on the amount of cryptocurrency held and staked by validators.The design of a reward protocol can significantly influence network participation, security, and overall economics. By carefully structuring incentives, these protocols aim to ensure that participants are motivated to act in the best interest of the network, thereby fostering a healthier and more secure ecosystem.