> For the complete documentation index, see [llms.txt](https://totochain.gitbook.io/totochain/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://totochain.gitbook.io/totochain/toto-chain-faq/resource-and-reward-management.md).

# Resource and Reward Management

## **How do I manage and utilize the POTENTIAL I earn as a block producer?**

As a block producer, you **earn POTENTIAL** by signing transactions and producing blocks. You can **manage and utilize it** in the following ways:

* **Pay for on-chain transactions** (e.g., executing smart contracts, transferring assets).
* **Refer new users** by transferring POTENTIAL to them as an onboarding incentive.
* **Accumulate and use it within 28 days**, or it will start decaying.
* **Claim core assets (TOTO) by submitting fractional NFTs (fNFTs)** if you have collected enough.

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## **What happens if I don’t use my POTENTIAL within the 28-day decay period?**

POTENTIAL follows a **decay mechanism**, meaning:

* **1/28th of your POTENTIAL balance is burned every day** if unused.
* **If you don’t use it within 28 days, the entire amount will be lost.**
* **POTENTIAL earned through referrals does not decay** unless the referrer consumes it​.

***

## **Can POTENTIAL be exchanged or traded like TOTO?**

No, **POTENTIAL is not a tradable or transferable asset** like TOTO.

* It **can only be used for network fees and referring new users**.
* Unlike TOTO, it **cannot be directly sent to other users for trading**.
* Once it decays, it **returns to the network's magic-box pool**​.

***

## **How do puzzle pieces (fractional NFTs) work, and how are they used to claim full rewards or NFTs?**

* **Fractional NFTs (fNFTs) are puzzle pieces** randomly distributed to block producers as rewards for signing blocks.
* You need to **collect all required puzzle pieces** to form a **complete NFT**.
* Once a full NFT is assembled, you can **submit it manually** to claim TOTO or additional rewards.
* The system determines how many puzzle pieces are needed to complete an NFT, based on **referral activity and block production**​.

***

## **What actions can I take to earn fNFTs?**

You can earn **fractional NFTs (puzzle pieces)** through the following actions:

* **Block Production** – Each signed block rewards the producer with **POTENTIAL and fNFTs**.
* **Referring new users** – More active referrals increase the number of fNFTs earned.
* **Participating in ecosystem activities** – Certain blockchain dApps and communities may distribute fNFTs for engagement​.

***

## **When I submit a full NFT, how much TOTO will I earn?**

The amount of **TOTO (core asset) you earn** when submitting a full NFT depends on:

1. **The number of puzzle pieces required to complete the NFT** – More pieces may result in higher rewards.
2. **The total amount of TOTO available in the reward pool** – If the pool is low, rewards may be reduced.
3. **Your referral network’s contribution** – More referrals increase the amount of core assets you can claim.
4. **The number of block producers competing for rewards** – If many users are submitting NFTs, the reward per NFT may be lower.

The **exact calculation formula is still being finalized**, but rewards are proportional to **puzzle piece count, network activity, and available funds**​.