Vault block rewards are ready to be activated, according to the Interlay tokenomics: 30% of 4 year supply (i.e., 300 million INTR), emitted as follows:
40% in the first year (120 million INTR)
30% in the second year (90 million INTR)
20% in the third year (60 million INTR)
10% in the fourth year (30 million INTR)
Why do Vaults receive block rewards?
Vaults are the heart of the Interlay network. Vaults are network participants who ensure BTC remains locked on Bitcoin while iBTC exists - that is, they enforce the 1:1 peg to locked BTC. To prevent misbehavior, Vaults lock collateral with the parachain such that the collateral value always exceeds the value of the secured BTC. If a Vault misbehaves, their collateral is slashed and users reimbursed. Vaults take up liquidation risk as well: if the price of the collateral assets decreases significantly compared to BTC, Vaults may be liquidated and lose their collateral. Vaults hence receive INTR as reimbursement for their risk - and to ensure they can protect themselves against hostile governance takeovers. Anyone can become a Vault, anytime.
Reminder: Vault only earn block rewards if they have BTC locked. Rewards are distributed based on each Vault’s share of the total BTC locked.
Like it was describe in the whitepaper, Early Vaults receive more rewards as they take up higher risk in terms of protocol maturity.
The same rules was introduce and apply for Kintsugi vaults.
Interlay/Kuntsugi 101: https://docs.interlay.io/#/getting-started/interlay-101
Interlay token economy: https://github.com/interlay/whitepapers/blob/master/Interlay_Token_Economy.pdf
Vault docs: https://docs.interlay.io/#/vault/overview