# Improving Yield Distribution & DAO Alliance Coefficient Calculations ### **Proposal Overview**

To further improve ARK’s reward system and DAO alliance incentives—and to better align contributions with long-term participation—this proposal introduces **two targeted updates** to the current rules.

**1）Remove the “Active Account” Requirement for Staking Rewards**

* **Current Rule:** Only accounts with a total holding value of **100 USDT or more** are eligible to receive staking rewards. * **Proposed Update:** All staking accounts, **including those below 100 USDT**, will be eligible to earn staking rewards. The **active account requirement will remain unchanged for DAO alliance rewards**. * **Why This Matters:** * Lower the entry barrier for new users * Allow more holders to benefit from protocol growth * Expand staking participation without weakening alliance incentive standards

**2）Include Compounded Rewards in DAO Alliance Coefficient Calculations**

* **Current Rule:** DAO alliance coefficients are calculated **based only on the original staked principal**, excluding compounded (reinvested) rewards. * **Proposed Update:** Compounded rewards will be counted as part of contribution performance and included in **DAO alliance coefficient upgrades**.

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* **Why This Matters:** * Reflect real, long-term contribution more accurately * Encourage compounding and reinvestment behavior * Better align incentives with the **(3,3)** long-term cooperation model

### **Proposal Goals**

* Lower participation friction and grow the active community * Reward long-term commitment and compounding behavior * Ensure incentives are fair, transparent, and contribution-based

### &#x20;**Implementation Timeline**

* Once approved, the changes will go live **after the system update is completed** (exact timing will be announced separately) * The new rules will be **updated on the DApp frontend at the same time** * All reward and coefficient calculations will be applied **immediately under the new logic**