# Reputation and reward system

* Every user’s Reputation Score starts at a value of 1.0x 
* Reputation can be as low as 0.1x and as high as 3.0x 
* Rewards are given to those who have voted in the majority. 
* Rewards consist of Reputation, BMIs, and USDTs
* Voters voting in the minority suffer Reputation loss.
* Voting in the extreme minority - 10%, will result in stkBMI penalty
* Voters can vote on different claims with different stkBMI amounts (by increasing their total staked stkBMI amount).  
* Rewards are distributed based on the number of stkBMI used by the user in specific claims and their Reputation Score (Voting power).
* Rewards, penalties, and reputation are calculated for each claim separately and are based on the stkBMI amount used at the moment of voting. 

## How is the reputation calculated?

**Voter\_x** - Voter for which the current calculation is done​\
**Rep\_x** - Voter**\_**x reputation before the calculation\
**Rep\_x\_n** - Voter\_x reputation after the calculation\
**V\_MIN%** - % of voters voting in the minority\
**V\_MAJ%** - % of voters voting in the majority

If the user has voted in the majority:

$$
{Rep}*{x\_n}=Rep\_x-{\frac {V*{maj}} {20}}
$$

If the user has voted in the minority:

$$
{Rep}*{x\_n}=Rep\_x-{\frac {({1}-(V*{min}\*2))^2} {2}}
$$

## How are the rewards calculated?

**Voter\_x** - Voter for which the current calculation is done​\
**Share\_x** - % of the Voter\_x participation in the rewards distribution  \
**Voting Power (VP)** = *Reputation Score \* stkBMI of the Voter\_x that has been used in voting*

$$
Share\_x = \frac {{VP}*x} {\sum*{1}^n{VP}\_1+{VP\_n}}
$$