> For the complete documentation index, see [llms.txt](https://xai-foundation.gitbook.io/xai-network/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://xai-foundation.gitbook.io/xai-network/kn/staking-explained/staking-pool-guide/generating-rewards.md).

# Generating Rewards

1. A network Challenge occurs typically every hour, and the referee determines which Sentry Keys can participate.
2. The referee smart contract assesses the esXAI staked in each pool to determine the pool's tier.
3. The referee applies the tier’s reward odds to every Sentry Key in the pool to determine if they can participate and generate Network Rewards from an assertion.
4. The Node Operator will submit an assertion for any keys that are able to generate Network Rewards.
5. For example, if the referee determines that three keys in your pool have participated in the Challenge:
   1. The pool owner submits assertions for these keys in a single transaction.
   2. The rewards for these assertions become claimable after 1 hour.
   3. The pool owner claims the esXAI rewards for the winning keys in a single transaction.
6. Bulk claiming results in gas savings, especially with more Sentry Keys in the pool, as unlimited Sentry Keys can be in a single bulk claim transaction.
7. The claimed esXAI rewards are distributed among the pool owner, Sentry Key stakers, and esXAI stakers based on the pool's reward breakdown and the terms and conditions of the Pool (as determined by the Pool Owner).
8. Stakers can claim their portion of the rewards from the pools listing on <https://app.xai.games/staking>
   1. Stakers can let their rewards accrue to claim at more gas optimal times


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