Reward Pool
There is a daily reward pool that is funded out of the inflation of the coin. This is meant to incentivize different behavior which benefits the ecosystem. Out of this daily inflation we see Witnesses paid for their block production, users rewarded for creating and curating content, and HP holders having their accounts adjusted to offset the expansion of the coins.
The reward pool is Hive's coin distribution mechanism. Each day, individuals receive rewards based upon the value tied to their activity on-chain. This is often measured by the total stake associated with the voting that takes place. After the 7 day voting window closes, one can claim his or her rewards.
Payments are based upon the option selected by the user. For blog posts, one can opt for either 50/50 (HP/HBD) or the entire payout in HP.
This process utilizes the Proof-of-Brain PoB) mechanism. It is a system of voting based upon the total voting power, both direct and delegated, that each vote casts. Over the course of the voting window, rewards are adjusted based upon changes in voting power of each cast. Upon the close of that period, the total is locked in and payouts occur.
While there is a reward pool at the base layer, Hive also offers a similar feature with many layer 2 applications. By creating tokens on sidechains linked to Hive, and incorporating the PoB mechanism, many communities also reward content with their own token.
Most will follow the same voting window yet have different from Hive in terms of the staking/unstaking times. Hive utilizes a 13 week power down period to provide stability to the system and to deter outside attacks. Many projects opted for a shorter unstaking period on their tokens.
Source Leoglossary
LeoGlossary