> For the complete documentation index, see [llms.txt](https://docs.powercity.io/beehive/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.powercity.io/beehive/rewards-distribution-mechanism.md).

# Rewards Distribution Mechanism

Rewards within the BeeHive Protocol are distributed based on the duration participants commit to staking their Honey Tokens. The allocation is spread over different payout periods:

* **Cycle-Based Rewards**: Each cycle (1 day) culminates in reward distribution.
* **Allocation Percentages**:
  * **9-Day Payout**: **34%** of the allocated rewards are distributed over 9 days.
  * **81-Day Payout**: **26%** of the rewards are distributed over 81 days.
  * **243-Day Payout**: The remaining **22%** is distributed over 243 days.
  * **555-Day Payout**: **18%** HONECOMB ELITE CLUB TICKET HOLDERS.

This tiered reward system incentivises users to commit to longer staking periods for higher cumulative rewards.