DOT Rewards and Rebates Process

Kiln's Polkadot Validators and 100% Commission:

• Commission Structure: Kiln's public validators are set to a 100% commission rate, meaning all staking rewards are retained by the validator.

• Reward Distribution: Due to this setup, rewards are not automatically distributed to nominators' addresses. Instead, Kiln manages reward distribution off-chain through a monthly rebate process, ensuring clients receive their earned rewards directly from Kiln.

Rationale Behind the 100% Commission:

• By setting a 100% commission rate, we effectively deter external nominators from delegating to our pool, as they would not receive any staking rewards. This approach ensures that the rewards are retained entirely by the validator, preventing dilution and allowing for tailored distribution strategies.

Important Considerations

• Rebate Timing: There may be a delay between when rewards are earned and when rebates are processed. This is due to the complexities of managing the Polkadot protocol for optimal performance and stability.

• Interim Payouts: Customers should be aware that they might need to use their own funds to pay out rewards to end-users in the interim, as rebates are not instantaneous. If you have specific concerns about the rebate process or need adjustments to better suit your operational needs, please discuss this with your Kiln representative. We're committed to finding solutions that work for our customers while maintaining the integrity and performance of our staking services.