4.1 Reserve Pool as Source of Rewards
Staking rewards distributed through the Service are sourced exclusively from the CROSS Protocol’s Reserve Pool (the "Reserve Pool"), which constitutes sixty percent (60%) of the total fixed supply of $CROSS tokens. No new $CROSS tokens are minted for the purpose of funding staking rewards or for any other purpose. The CROSS Protocol operates under a strict no-minting policy, and the total supply of $CROSS is permanently fixed. All rewards paid to Delegators represent a redistribution of pre-allocated tokens from the Reserve Pool and do not reflect any increase in the total circulating supply.
4.2 Annual Halving Mechanism
The rate at which staking rewards are distributed from the Reserve Pool is subject to an automatic halving mechanism that occurs on an annual basis (each such event, a "Halving"). At each Halving, the block reward distributed per epoch is reduced by fifty percent (50%) relative to the preceding period. As a result, the absolute quantity of staking rewards available to Delegators will decrease over time in accordance with this schedule. Delegators acknowledge and accept that the annual percentage rate (APR) of staking rewards will decline over successive Halving cycles.
4.3 Reserve Depletion Risk
As staking rewards are drawn from a finite Reserve Pool, the Reserve Pool will diminish over time as rewards are distributed. In the event that the Reserve Pool is fully depleted, staking rewards will cease entirely unless the Foundation determines through governance processes to implement an alternative reward mechanism. Delegators acknowledge this inherent limitation and accept that no guarantee is made regarding the continued availability or duration of staking rewards.
4.4 Reward Accrual
Subject to the foregoing, staking rewards accrue automatically to the Delegator’s staked balance on a daily basis. No manual claim action is required for reward accrual. Accrued rewards are automatically compounded into the Delegator’s staked balance, increasing the effective stake over time.
4.5 Reward Variability
Staking rewards are variable in nature and are determined exclusively by the Protocol and its automated on-chain mechanisms, including the prevailing block reward rate and Halving schedule. OGF Corp makes no representation, warranty, or guarantee regarding reward rates, yields, annual percentage rates, or validator performance. Any estimated reward figures displayed through the Service are indicative only and do not constitute a promise or guarantee of returns.
4.6 No Guarantee of Profit
Participation in staking does not constitute an investment, deposit, or financial product. There is no expectation of profit derived from the efforts of OGF Corp or the Foundation. Staking rewards, if any, are generated solely by protocol-level mechanisms and may be modified, reduced, or eliminated at any time through governance decisions or as a result of the Halving mechanism or Reserve Pool depletion.
4.7 OGF Corp is Not a Payor
All staking rewards are calculated, accrued, and distributed at the protocol level through automated on-chain mechanisms drawing from the Reserve Pool. OGF Corp does not act as a payor, intermediary, or settlement agent in respect of any staking rewards and has no obligation or ability to supplement rewards from its own resources.
4.8 No Clawback of Distributed Rewards
Staking rewards that have been distributed to and accrued in a Delegator’s staked balance shall not be subject to retrospective reduction, clawback, or recoupment, except in cases involving fraud, willful misconduct, or a material misrepresentation by the Delegator. For the avoidance of doubt, changes to future reward rates resulting from the Halving mechanism, governance decisions, or Reserve Pool depletion shall not constitute a clawback of previously distributed rewards.