> For the complete documentation index, see [llms.txt](https://wiki.krown.network/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://wiki.krown.network/v2-draft/staking-rewards-and-slashing-penalties/introduction.md). # Introduction ## Staking Rewards and Slashing Penalties in the Krown Blockchain (Without Token Minting) The Krown Blockchain introduces a unique Proof of Stake (PoS) system where staking rewards are distributed without minting new tokens, preserving the fixed total supply of 100 billion KROWN. Instead, rewards are sourced from transaction fees generated by network activity, creating a sustainable and economically balanced model. To maintain network security and integrity, a slashing mechanism penalizes validators for misbehavior, ensuring that participants are incentivized to act responsibly. This section explores the staking process, reward distribution, slashing penalties, and the benefits of this innovative approach. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://wiki.krown.network/v2-draft/staking-rewards-and-slashing-penalties/introduction.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.