> For the complete documentation index, see [llms.txt](https://docs.tan.live/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.tan.live/getting-started/core-concepts/tan-consensus-bpos.md).

# TAN Consensus(BPoS)

***Block Per Reward Proof of Stake (BPoS)*** is the core consensus mechanism driving the TAN blockchain. It merges the efficiency of ***Proof of Stake (PoS) with a unique (BPoS) Block Per Reward system*** offering a scalable and secure network. This mechanism ensures fast transaction processing, rewards network participants, and maintains the blockchain’s decentralization.

## **# H**ow it works?

TAN’s ***Block Per Reward Proof of Stake (BPoS)*** system differentiates itself by ***rewarding validators based on the number of blocks they propose***, rather than the amount of TAN tokens they stake. This ensures that validators are motivated to contribute actively to block creation and network security.

* **Fast Block Times:** TAN’s blocks are created every ***5 seconds***, enabling faster transaction processing and reducing congestion, compared to networks with slower block times.
* **Validators' Dual Role:** Validators secure the network by validating transactions and creating blocks, while also participating in governance with ***equal voting power***, giving everyone a voice in the network’s future.
* **Delegator's Role:** Delegators stake TAN tokens with trusted validators, earning rewards based on their stake. This promotes decentralization and requires ***60% validator approval*** for governance proposals, ensuring strong decision-making.

## **# Key Benefits of (BPoS):**

* **Fast Block Creation:** TAN network creates blocks every ***5 seconds,*** allowing for quick transaction processing, faster finality, and higher throughput. This is much faster than ***Ethereum’s 12-15 seconds*** block time, reducing congestion and increasing efficiency.
* **Validator Incentives:** Validators earn a share of TAN rewards for creating new blocks, encouraging active participation and network security. The block reward decreases over time through halving ***period of every four year***, controlling inflation and ensuring stability.
* **Security and Decentralization:** **(BPoS)** ensures a secure, trustless network without a central authority, keeping the blockchain decentralized and all TAN transactions secure and transparent.

## # Block Reward Distribution

Validators receive rewards for their work, but the block reward is distributed into three parts:

1. **Validator Reward (20%)**: The validator who successfully mines and validates the block receives **20%** of the block reward.
2. **Burn Subsidy (50%)**: Half of the block reward is allocated to a burn subsidy, reducing the total supply of TAN tokens over time. This mechanism enhances scarcity and value. Additionally, once a burn occurs,*(**Initial staked amount + 20%)*** of the burned amount is reverted as an incentive.
3. **Ecosystem Subsidy (30%)**: The remaining ***30%*** is distributed among various incentives to promote the growth and adoption of the TAN ecosystem. The subsidy is divided as follows:
   * **Developer Incentives**: Supporting developers contributing to the blockchain’s ecosystem.
   * **Staking Incentives**: Rewarding users for participating in staking.
   * **Wallet Incentives**: Encouraging users to hold TAN in official wallets.
   * **Holding Incentives**: Encouraging long-term holding of TAN tokens.