The reserve started at the genesis supply minus the initial circulating ada. Each epoch, the protocol moves ρ × remaining_reserve lovelaces into the reward pot, where it joins the transaction fees collected during that epoch. Because the reserve shrinks over time, this reserve-draw component declines geometrically: the network keeps issuing rewards, but at an ever smaller rate.
The treasury cut (τ) is taken from this reward pot before the rest is paid to stake pools and delegators.
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- RewardsAda earned by delegators and stake pool operators for participating in the network.View term
- TreasuryAn on-chain fund that accumulates a portion of transaction fees and monetary expansion.View term
- Treasury CutThe protocol parameter (often called τ) that decides what fraction of each epoch's reward pot is moved to the on-chain treasury before the remainder is paid to stake pools and delegators.View term
- adaThe native cryptocurrency of the Cardano blockchain, used to pay transaction fees, stake to a pool, and represent voting power in governance.View term