# Rewards ## Rewards Validators earn rewards on the open protocol and as members of cohorts invited by creators of crypto asset whitepapers, Process Controls and financial statements. Validators are rewarded for validating crypto asset whitepapers, financial statements and "Tokenized Process Controls" that are created by the community. Rewards are derived from three sources: direct payments, subsidies and royalties. All are subject to [governance](https://docs.pacioli.ai/deflationary-token-economy#governance). The tables below illustrate how the percentage of rewards are allocated across the token economy based on each role. Royalties are a separate source of income. ## Open Protocol Allocation Validation rewards are subject to [governance](https://docs.pacioli.ai/deflationary-token-economy#governance) and are initially allocated on the open protocol as follows:
ALLOCATIONSTRUCTURED DISCLOSURESPROCESS CONTROLS
Winning Validator20%35%
Corroborating Validators18%30%
Process Control Owners40%-
Future Subsidy Replenishment10%15%
Liquidity5%5%
DevSecOps3%5%
Governance Staking2%2%
AIrdrops/Grants2%8%
TOTAL100%100%
## Cohort Allocation Validation rewards are subject to [governance](https://docs.pacioli.ai/deflationary-token-economy#governance) and are initially allocated within cohorts as follows:
ALLOCATIONSTRUCTURED DISCLOSURESPROCESS CONTROLS
Winning Validator50%50%
Corroborating Validators30%30%
Process Control Owners5%-
Future Subsidy Replenishment1%15%
Liquidity2%5%
DevSecOps2%5%
Governance Staking1%2%
Airdrops/Grants9%8%
TOTAL100%100%
## Royalties In addition to the validation rewards, there is a separate royalty system for Process Controls created by users to train Pacioli to do it’s work. Process Controls are represented by NFTs. The creator claims them after they are validated and proven to work correctly. The validators who validate them receive royalties each time they are used. There are 4 types of Process Controls: * Crypto Asset Disclosure Controls * Financial Statement Controls * Audit Controls * Analysis Controls The number of Process Controls that can be created is unlimited. **NOTE:** Deactivation results in the loss of the perpetual royalties on Process Controls validated. Every time a Process Control is used, the royalties are allocated as follows: | ROLE | PERCENTAGE | | ------------------------------------ | :--------: | | Process Control Creator | 40% | | Winning and Corroborating Validators | 40% | | Project Wallet | 20% | ## Claiming All rewards are cumulative for gas efficiency and can be claimed at any time. Rewards are claimed from a claim contract by each validator. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.pacioli.ai/rewards.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.