> ## Documentation Index
> Fetch the complete documentation index at: https://legal.autheo.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Exhibit C — Emissions and rewards mechanics

*Version 1.0 — Effective November 20, 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.