How Rewards Are Distributed

For the purposes of easy comparison to first-generation Bitcoin, the term hashrate has been used in the Bitcoin Spark whitepaper, but simply solving hexadecimal hashes will not be the main way in which 'mining' rewards are provided.

Users are required to provide a stake on the network in the same way that Proof-Of-Stake blockchains function. However, it will not directly correlate in the same way that the more you stake, the more you earn.

Processing power must also be made available to the network, and this power is used by the Bitcoin Spark 'clients' that rent network power as remote computing processing for high CPU or GPU load tasks.

The rewards are then calculated as a blend between the individual stake of the miner and the work done for those using the network as remote computing power. The higher the stake and the more 'work done' then, the higher the rewards, in a non-linear fashion. Rewards are skewed to be higher for work done versus stake size in order to prioritize the revenue-generating product.

It is approximated with planned Bitcoin Spark rewards that each individual will be able to provide around 5 Teraflops before a significant reduction in rewards against additional power comes into effect.

This is variable as time goes on, based on the total network output in Teraflops, the demand from network clients, mining rewards remaining, and total BTCS staked. This will end up linear with advancements in technology, to ensure the product remains relevant.