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Incentive Modules

/babylon/x/incentive

The incentive module acts as a reward distribution and tracking system for two key aspects:

  • BTC Staking Rewards Distribution
  • Finality Provider Rewards Distribution

Module functions:

  • Manages reward distribution for BTC stakers
  • Records historical and current rewards for Finality Providers
  • Enables reward withdrawal mechanisms
  • Maintains delegation rewards

Note that this module does not take care of the reward distribution for Babylon Genesis validators. This is handled by the distribution module which is standard practice for Cosmos SDK based chains.

BTC Staking Rewards Distribution​

In this function, the incentive module manages the distribution of rewards through:

  • Tracking BTC staking gauges at specific block heights
  • Managing reward gauges for BTC stakers and Finality Providers
  • Handling reward withdrawal requests
  • Maintaining withdrawal address configurations

Finality Provider Rewards Management​

The incentive module also manages Finality Provider commissions through:

  • Tracking historical rewards per Finality Provider
  • Managing current rewards and periods
  • Handling delegation rewards tracking
  • Processing reward distribution calculations

Note that this module requires initial state configuration at genesis, including parameters such as BTC staking portions and reward distribution rules.

Endpoints​

The incentive module provides the following endpoints:

  • GET /babylon/incentive/params - to query module parameters
  • GET /babylon/incentive/address/{address}/reward_gauge - to query reward gauges for a stakeholder
  • GET /babylon/incentive/btc_staking_gauge/{height} - to query BTC staking gauge at specific height
  • GET /babylon/incentive/delegators/{delegator_address}/withdraw_address - to query delegator's withdrawal address
  • GET /babylon/incentive/finality_providers/{finality_provider_address}/delegators/{delegator_address}/delegation_rewards - to query delegation rewards