In this article, we explain the most common payment schemes used by delegation services and, using examples, show how to set up Baking Bad (or just BB) for these schemes.

Payment schemes

At first, let’s remember how rewards are paid to bakers in Tezos. The baker receives a reward each time he produces a new block, endorses a block, etc. But this reward is frozen and can’t be spent by the baker for the next 5 cycles. In addition, for security reasons, some deposit is blocked from the baker’s account for the next 5 cycles. In case of fraud the blocked deposit will burn.

There are two ways to classify payment schemes:

1. By payouts delay (lag):

after the reward becomes available to baker;

before the reward becomes available to baker.

2. By payouts frequency:

on every cycle;

once in N cycle;

once the “min. payout” was met.

We will discuss in details the pros and cons of each schemes in the followings articles. Now let’s look how to work with BB when you have one or another payment scheme.

Payout tab

We are trying to design BB as flexible as possible so that you can use it with any payment scheme. Currently it may not be so convenient, but possible. For this purposes there is the “Payout” tab, where you can set up any payouts, directly linking them to desired cycle.