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OVR Distribution Formula

In general, consensus winners earn significantly more because they pay the gas fee for submitting data on-chain and thus have higher expenses. The distribution of Oracle Validation Rewards (OVR) works as follows:

  • OVR = X% of the smart contract controlling consensus.
  • The reward of the functions is P (percentage) of the rewards.
  • The oracle validator who submits the data to confirm consensus first on-chain earns (≈60%) of the OVR.
  • The other oracles who signed the data off-chain share the remaining rewards (≈40%).

Lightning Oracles compete against each other on a transaction basis. The oracle who correctly validates the fastest wins and earns the highest amount of rewards. The others confirm the validation, and the remaining rewards are shared proportionately among all.