RAIL Security Rewards

RAIL stakers provide security to the RAILGUN Protocol. By signaling their support or non-support of potential code changes, stakers ensure that only beneficial changes can be made to:

• The core privacy smart contracts

• The on-chain treasuries

• Any other on-chain component of the RAILGUN Protocol.

For their work in securing the RAILGUN Protocol, stakers receive a regular reward to incentivize active engagement with the code change process.

To receive these rewards, stakers must:

1. Have some RAIL locked.

2. View the Governance Portal at least once and check for any ongoing proposals.

3. Submit gas to claim rewards.

4. Not delegate their vote to a different address. If votes are delegated, the address that is delegated to will receive the allocation.

RAIL stakers receive a portion of protocol deductions as an incentive for participation in code changes. This is because anyone can propose any code changes to the protocol at any time. Widespread participation in the code change process protects the integrity of the RAILGUN Protocol.

2% of the treasury tokens are allocated to the claiming mechanism every 2 weeks.

Tokens are allocated in WETH (or WBNB/WMATIC for other chains), RAIL, and DAI. RAIL stakers can claim their tokens (a transaction which requires gas) on whichever chain their RAIL is locked.

RAIL stakers receive an allocation proportionate to the amount of RAIL they have locked in the governance contract. For example, if a user's locked share of RAIL is 1% of all staked RAIL, then the user can collect 1% of the 2% biweekly allocation.