> For the complete documentation index, see [llms.txt](https://docs.swipe.org/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.swipe.org/swipechain/swipe-nodes/incentivizes.md).

# Incentivizes

The system is safest and most capital-efficient when 67% of SXP is bonded and 33% is staked in pools. At this point, nodes will be paid 67% of the System Income, and liquidity providers will be paid 33% of the income. The Sytem Income is the block rewards (`blockReward = totalReserve / 6 / 6311390`) plus the liquidity fees collected in that block.

An Incentive Pendulum ensures that liquidity providers receive 100% of the income when 0% is staked (inefficent), and 0% of the income when `totalStaked >= totalBonded` (unsafe). The Total Reserve accumulates the `transactionFee`, which pays for outgoing gas fees and stabilises long-term value accrual.