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All you ever wanted to know about Engagement Points

Photo by tribesh kayastha on Unsplash

The mechanics

In Tgrade, both Stake and EPs are necessary for validators to enter the validator set. The “validator power” is then proportional to both EPs and Stake, and computed through a “mixing function” that combines the effect of both. The validator power determines how often they are selected to sign a block and thus receive the block rewards for their activity.

Block Reward Distribution

A significant part (~50%) of the block rewards is distributed among validators, proportionally to the voting power that they have in the validator group contract.

  • 47.5% to Validators.
  • 47.5% to Engagement Point holders.
  • 5% to the Community Pool.

Validator Slashing

Slashing of a validator can be the result of a proposal submitted, voted and passed through the Oversight Community governance, or an automatic event based on evidence of double signing.

Validator Jailing

Jailing is a sanction in addition to slashing. It means that the validator is temporarily or permanently disabled from validating blocks, depending on the time period set.

Half-life and the quest for continuous engagement

Half-life is mechanism by which the number of EPs is halved (decays) as time passes. The idea being that EPs are the rewards for effort and engagement, to incentivise collaboration, and the impact of the EP is considered in short to medium term making it only fair that the rewards gradually diminish. The half-life mechanism encourages active engagement as the community must continue to be involved and make contributions.

Sum of the active EPs

The total number of EPs at any given time is then the sum of EPs granted during genesis, plus the sum of EPs granted to the members of the engagement contract (at genesis or through OC proposals), minus the amount of slashed EPs.


The current values for epoch length and epoch reward are:

"epoch_length": "120s",
"epoch_reward": {
"denom": "utgd",
"amount": "22815911"

Summing up EPs

Wrapping up EPs and how they work the following points are a nice summary on how they work.

  • EPs in the validator group contract are used to define the voting power, along with the validators’ stake, and through the mixing Sigmoid function.
  • This validator power determines in turn the amount of rewards granted to validators during block signing.
  • And that amount of EPs determines in turn the distribution of (about half of) the block rewards.
  • The other “half” (47.5%) of block rewards goes to EP holders in general, and is distributed according to their EPs in the engagement contract.
  • The remaining 5% is sent to the community pool contract.



The foundation of Tgrade is a robust, secure, fully decentralized platform that offers the ability for self-sovereign groups to form and interact with each other.

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Martin Worner

Growing Tgrade, a business focussed, public blockchain, which solves real world issues.