Reward Cycle

The reward cycle runs monthly, from the 25th of each month to the 25th of the following month. This is called an epoch.

Each epoch, Minutes Network uses 100% of its net revenues generated from telecom operations to algorithmically purchase MNTx on the open market to fund DePIN service fees. These tokens are then distributed across the four reward pools according to a fixed allocation structure:

10% to Node Holders
60% to Node Stakers (subject to the algorithmic burn)
15% to Network Participants
15% to the Developer.

This cycle is one of the defining features of the entire model. It creates a direct, recurring link between the commercial performance of the network and the flow of tokens into the ecosystem. There are no discretionary treasury decisions, no manual buybacks, and no emissions schedule driving reward distributions. Every token that enters the reward cycle in a given epoch was purchased on the open market using real fiat revenue generated by live voice traffic and other telecom related revenues.

The practical implication is that the size of the reward pool is not fixed. It grows as the network grows. More carrier interconnections mean more traffic. More traffic means more revenue. More revenue means larger algorithmic MNTx purchases for the DePIN Service Fees and larger reward distributions. The same compounding effect applies as Jingle Plug-In integrations increase the margin captured per call and as additional revenue sources such as Unity network service fees feed into the same pool.

For participants across every category, the reward cycle is where telecom activity becomes token value. Node operators and stakers receive their distributions each epoch based on their positions and performance. Network users accumulate rewards from the calls they make and receive. The developer receives its allocation to fund continued network innovation. All of it flows from the same source: the revenue the network earns by processing real international voice traffic every month.

The algorithmic burn calculation depends on the proportion of circulating MNTx that is staked. But not all tokens that exist count as circulating for this purpose. Two categories are explicitly excluded from the circulating supply figure used in the burn formula.

Claimable rewards accumulated by network participants in non-custodial wallets are not held indefinitely. Any rewards that remain unclaimed for 60 months from the date of issuance are permanently burned. They are neither redistributed to other participants, returned to the reward pool, nor carried forward. Once the 60-month period has elapsed, the unclaimed balance is removed from the total supply entirely.

This policy applies to the 15% user allocation, covering both caller and receiver rewards generated each epoch. Rewards begin accumulating from the moment a call is completed over the network and a phone number is assigned its non-custodial wallet. The 60-month clock runs from the point of issuance, not from the point at which a participant becomes aware of or registers to claim their rewards.

For network users, the practical implication is straightforward. Rewards are real and accessible through the MNTx Portal, but they require active claiming within the 60-month window. The portal provides the tools to check accumulated balances and initiate claims. Details on how to access and claim rewards are covered in the MNTx Portal section.

From a supply perspective, the unclaimed rewards burn contributes to the deflationary mechanics of MNTx alongside the staker pool burn and the delegated staking burn. Any portion of the user allocation that goes unclaimed over a 60-month period is permanently removed from the total supply rather than re-entering circulation.