Accruing Node Rewards

• To accrue node rewards, a Sentry Key must participate in a Challenge.

• A Challenge is created approximately once every hour. This means there will be ~720 Challenges per month.

• Each Sentry Key that participates in a Challenge will receive a pro rata share of the Network Reward, as described in Network Rewards.

• By default, each Sentry Key has a 1% probability of participating in a Challenge. This is known as the Bronze Tier.

• The probability that a Sentry Key will participate in a Challenge will increase if the Key is staked in a Pool with higher Tier than Bronze. Each Reward Tier is explained in the section, Staking Rewards and Tiers.

• To maximize the potential of earning Network Rewards from a Sentry Key, it is strongly recommended that you participate in a Pool and run the Sentry Wallet (a.k.a. Operator) 24 hours a day, 7 days a week.