1.3 Founder node Reward Distribution

The Cashtap reward distribution model is designed to incentivize both Delegates (Founder Node operators) and Stakers, promoting active participation, long-term stability, and network growth.

Rewards for Delegates (Founder Node Operators): Delegates earn rewards based on the total amount of $CASH staked in their Founder Node. As more $CASH is delegated to a node, the Delegate’s share of the network rewards increases. In addition, Delegates receive a 10% commission from the rewards generated by Stakers who delegate their tokens to that node.

Note: Delegates will only emerge once a sufficient portion of the initial $CASH supply has been mined and is in circulation. This ensures the network becomes decentralized progressively and sustainably.

Rewards for Stakers (Partial Node Participants): Stakers who participate through Partial Founder Nodes receive daily mining rewards based on the size of their partial node allocation.

Example (Partial Node 1 — 75,000 $CASH allocation):

• Mines the allocated supply over 540 days,

• Distributes approximately 138 $CASH per day,

• Rewards are automatically distributed every 24 hours.

Stakers may unstake and exchange their mined $CASH into USDC at any time. When this exchange occurs, the Cashtap smart contract becomes the new holder of the exchanged $CASH, keeping supply circulation and ecosystem liquidity balanced.

Once the first Delegates come online, node owners who also hold $CASH may choose to delegate their tokens to a Delegate. At that point, ongoing rewards will be derived not only from mining allocations but also from:

• Network staking yields,

• Transaction volume within the platform,

• Other protocol-level revenue sources.

This dual reward system ensures that:

• Delegates are motivated to maintain high network performance and decentralization,

• Stakers can participate easily and benefit from predictable token issuance,

• The ecosystem remains balanced, inclusive, and growth-oriented as Cashtap expands.