EXHIBIT C — Emissions & Rewards Mechanics
Version 1.0 — Effective October 17, 2025
Scope. This Exhibit defines the validator emissions pool, schedule, and allocation. It does not promise any APR/APY or financial outcome.
Pool and Schedule. 7.5% of the 7,000,000,000 THEO supply (525,000,000 THEO) is allocated to validator emissions, released linearly over seven (7) years.
Allocation (baseline only at launch). For each reward window, the protocol distributes that window’s time-slice of emissions pro rata by License Weight among Active Validators: Sovereign = 1.0; Prime = 0.1; Core = 0.01. An Active Validator is a license recognized by the protocol in the applicable window, not suspended or jailed, and correctly configured for payouts.
Future incentives (prospective; not guaranteed). Autheo may in the future introduce separate, discretionary incentive programs (including a performance-based pool) funded outside the 7.5% validator emissions pool. Any such program will (i) apply prospectively only, (ii) be subject to governance, and (iii) include published eligibility criteria (which may be tier-specific, such as Sovereign-only). These programs do not alter or reduce the baseline allocation above.
Method of distribution. Distributions occur at protocol-defined intervals to each validator’s configured address; accounting is on-chain. The protocol may batch or delay distributions for upgrades or incident response without changing cumulative entitlement for unaffected periods.
Penalties and withholds. Protocol-level faults (for example, double-signing) may result in on-chain penalties. Material breaches of Exhibit B may result in rewards being reduced or withheld for impacted windows, in addition to protocol penalties. Distributions may be paused or withheld to comply with sanctions or other legal obligations.
Illustrations and disclaimers. Any figures in dashboards or calculators are illustrative only. Actual amounts vary with network conditions and participation. No APR/APY or profit is promised.
Governance changes. Governance may adjust parameters prospectively to preserve security and sustainability; previously accrued amounts are unaffected.