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Rewards v2.1 (operator directed Operator Set rewards) uses the same operator directed model but scoped to a specific Operator Set
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rather than AVS-wide.
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AVSs can [direct performance-based rewards](../../developers/howto/build/submit-rewards-submissions.md) to specific Operators using custom logic. Operator directed Rewards enable
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rewards to be distributed based on work completion, quality or other parameters determined by the AVS, allowing flexible and tailored incentives.
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Using operator directed rewards (v2) and operator directed Operator Set rewards (v2.1), AVSs can [direct performance-based rewards](../../developers/howto/build/submit-rewards-submissions.md) to specific Operators using custom logic. Operator directed Rewards enable
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rewards to be distributed based on work completion, quality or other parameters determined by the AVS, allowing flexible and tailored incentives.
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*[Variable Operator Fee Splits for AVS Rewards](rewards-split.md)
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## Rewards v2.2
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Operators can [set their per-AVS fee rate](../../operators/howto/configurerewards/set-rewards-split.md) on AVS Rewards to any amount from 0% to 100%. The default split is 10%. Setting
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a variable split per-AVS enables Operators to align their fee structures with their economic needs and the complexity and diversity of AVS demands.
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Operator fees can be varied by Operator Set for more granular reward fee structures.
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Rewards v2.2 (unique stake and total stake Operator Set rewards) implements [ELIP-014](https://github.com/eigenfoundation/ELIPs/blob/main/ELIPs/ELIP-014.md), and:
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* Unique stake rewards distributes based on allocated unique stake (`magnitude / max_magnitude`) within an Operator Set.
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* Total stake rewards distributes based on total delegated stake within an Operator Set.
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*[Variable Operator Splits for Programmatic Incentives](rewards-split.md)
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Rewards v2.2 enables auto-weighted distribution supports both retroactive and forward-looking submissions (up to 2 years).
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Operators can [set their split of Programmatic Incentives](../../operators/howto/configurerewards/set-pi-split) to any amount from 0% to 100%. The default split is 10%. Setting
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a split enables Operators to have flexibility in determining the appropriate take rate. The Programmatic Incentive splits
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integrate with the Rewards distribution process which ensures that Stakers delegating to Operators benefit proportionately.
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## Rewards split
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Operators can [set their per-AVS fee rate](../../operators/howto/configurerewards/set-rewards-split.md) on AVS Rewards to any amount from 0% to 100%. The default split is 10%. Setting
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a variable split per-AVS enables Operators to align their fee structures with their economic needs and the complexity and diversity of AVS demands.
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Operator fees can be varied by Operator Set for more granular reward fee structures.
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## Rewards submission, calculation, and distribution
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Rewards are submitted, calculated, and distributed as follows:
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1.[AVSs submit rewards submissions to Operators and Stakers](../../developers/howto/build/submit-rewards-submissions.md).
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2. The Rewards updater calculates Rewards offchain and consolidates these into a merkle root posted onchain.
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3.[Operators and Stakers claim their allocated Rewards](rewards-claiming).
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## Rewards Calculation
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## Rewards calculation
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Rewards are calculated via an offchain process. A Merkle root (known as the distribution root) is posted which represents
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the cumulative rewards across all earners weekly on mainnet and daily on testnet. There is an additional 2 hour delay on
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Submitting rewards for an AVS is handled by the [RewardsCoorinator core contract](../../concepts/eigenlayer-contracts/core-contracts.md).
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To submit rewards submissions, use [`RewardsCoordinator.createOperatorDirectedOperatorSetRewardsSubmission`](https://github.com/Layr-Labs/eigenlayer-contracts/blob/main/docs/core/RewardsCoordinator.md#createoperatordirectedoperatorsetrewardssubmission).
for Rewards v2 (operator directed rewards) and Rewards v2.1 (operator director Operator Set rewards).
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*`createUniqueStakeRewardsSubmission` or `createTotalStakeRewardsSubmission` for Rewards v2.2 (unique stake and total stake Operator Set rewards).
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An AVS can use onchain or offchain data in rewards logic to determine the reward amount per Operator. The rewards can be calculated
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based on the work performed by Operators during a certain period of time, can be a flat reward rate, or another structure based on
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Each rewards submission specifies:
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* Time range for which the rewards submission is valid. Rewards submissions can be retroactive from the [M2 upgrade](https://github.com/Layr-Labs/eigenlayer-contracts/releases/tag/v0.2.3-mainnet-m2)
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and last up to 30 days in the future.
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* Time range for which the rewards submission is valid.
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* List of strategies and multipliers that enables the AVS to weigh the relative payout to each strategy within a single rewards submission.
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* ERC20 token in which rewards should be denominated.
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