# 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
###  **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**
