# Reward Distribution
$BTCMT receives rewards from bitcoin mining centrally and distributes rewards to holders in a decentralized manner. The Minto project has a partnership with a reputable mining pool (F2Pool) one of the 3 largest pools in the world, where it receives rewards from bitcoin mining. The project will allocate all of its mining power to that pool in exchange for the rewards from mining, which will be calculated and distributed by the pool. Based on worldwide mining statistics, the project calculates that the downtime of mining facilities may be up to 8% per year. The centralization of this step is necessary to ensure accountability and efficiency: the mining pool will act as an independent service provider and auditor, monitoring the sufficiency of the project’s mining capacity.
The rewards distribution process is divided into two parts, where the reward is pegged to the token standard 1 $BTCMT = 0.01 TH/s, and the retained earnings are sent to the Treasury for further joint management using voting on the Governance portal.
A portion of the pool's accrued rewards will be sold in the marketplace to cover the project's daily operating and energy costs. The standard loss of energy efficiency in the industry is 3%. The formula for determining the daily costs of the project is:
**Daily costs = HR e. efficiency\* х Electricity price х Hashrate х 24 х 1.03**
The execution price and daily sale amount will be verified and published by the Minto project and certified by the mining pool. The remaining bitcoin mining bounty attributable to the mining capacity deposited in the project's dApp will be sent by the project and the mining pool jointly to the dApp for distribution to owners.
The project provides a motivation program for early investors who have staked tokens. If the total mining capacity of tokens staked is less than or equal to 80% of the total active mining capacity, then the owners of staked mining capacity will receive a proportional distribution of the total bitcoin mining reward.
The dApp will accumulate an amount in bitcoin, which the owner is entitled to withdraw, for each continuous day of token staking (UTC 00:00). The calculation and distribution of rewards in bitcoin will be done transparently and decentralized by the dApp. The owner can withdraw their bitcoin at any time, either in full or in part.
For example, if the owner stakes 1,000 $BTCMT in the dApp for a full day, then on the second day the owner will receive distributed mined bitcoin according to the amount of mining power equivalent to the number of tokens mined (10 TH/s).
Like traditional mining, the exact amount of bitcoin mined per unit of mining power will change daily because of the total hashrate of the Bitcoin network, the difficulty of the Bitcoin network, and the bitcoin exchange rate relative to energy costs.
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