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Add pseudo code reference to BN eligibity check #1425

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mgarbs merged 2 commits into from
Mar 19, 2026
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Add pseudo code reference to BN eligibity check #1425

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Add pseudo code reference to BN eligibity check
Nana-EC Mar 11, 2026
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mgarbs Mar 18, 2026
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14 changes: 12 additions & 2 deletions HIP/hip-1357.md
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Original file line number Diff line number Diff line change
Expand Up @@ -14,7 +14,7 @@ hedera-acceptance-decision: Accepted
status: Approved
last-call-date-time: 2026-02-11T07:00:00Z
created: 2025-12-02
updated: 2026-02-10
updated: 2026-03-11
requires: 1056, 1086, 1137
---

Expand Down Expand Up @@ -56,13 +56,23 @@ year and converted to the native cryptocurrency to determine the daily reward is
## Specification
During nightly reward fee calculations, when a `Node` in state is found to be eligible for consensus node rewards (based
on participation in enough consensus rounds) the logic may iterate of over the non-null `Node.associated_registered_node`
list. If an entry is found to match a registered node of type `BLOCK_NODE` then the network should issue an additional
list. If an entry is found to match a registered node with an endpoint of type `BlockNodeEndpoint` that declares PUBLISH API support
then the network should issue an additional
`CryptoTransfer` of `(targetYearlyBlockNodeRewardsUsd ($) / # of staking periods per year) * exchangeRate (h/$)`
to the `Node.AccountId`.

This ensures that governing authority members only receive block node rewards if they satisfy both consensus and block
node operation obligations.

The following pseudo-code depicts the logic
```
If CN is eligible for CN rewards
For each RegisteredNode present in Node.associated_registered_node
For each RegisteredServiceEndpoint
If (RegisteredServiceEndpoint.endpoint_type is of type BlockNodeEndpoint) & (BlockNodeEndpoint has endpoint_api of type PUBLISH)
then CN is eligible for block node rewards
```


### Consensus Node Specification

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