How do Growth Rewards Work?

• Merit has a lottery system for rewarding people for growing and using the network.

• A score is calculated per address by using the coin age of your address and your network’s. Coins that are 30 days old are fully mature and coins that are 7 days old are 50% mature. Your score increases as you acquire more Merit, grow your network, or both.

• When you receive Merit, you are entered into the lottery pool if your score is high enough multiplied by some random weight. The lottery pool has a maximum of ten thousand spots.

• Twenty winners are selected each block from the lottery pool at random where the chance of winning depends on your score. The winners get a share proportional to their score.

• Your score determines the probability of winning.

• The root address in the genesis block does not receive Growth Rewards.

• An address can be booted out of the lottery pool if an address not in the pool gets a better score x random weight.