# 5.4.1 Host Rewards - Rewards Formula

Since host rewards are affected by multiple various factors, the formulas below can be used for clarification and simplification.

Digital host rewards are calculated using the following equation:

$$
Hdr = (Rd \* Dv/Dwp) \* Rwn
$$

​**Where:**\
**Hpr** = Physical host rewards\
**Rd** = rewards drop\
**Pv** = % Ratio of physical hosts volume in total sales volume of all Wicrypt hosts\
**Pwv** = Physical hosts weighted volume (each hub’s volume is multiplied by its rank weight, location bonuses, user ranking adjuster and quality check adjuster,  and a result forms a cumulative weighted volume)\
**Hwv** = Total weighted volume generated by hubs held by an individual, physical host

While physical  host rewards are calculated as:

$$
Hpr = (Rd \* Pv/Pwv) \* Hwv
$$

![Host revenues & rewards summary
](/files/dkzV1AbbPILDMhDi56qN)

Lastly, each host has a PoS deposit which is subjected to the same rules as staked tokens, meaning that each **physical host** (digital  hosts are exempted from PoS requirement) is also acting as a $WNT staker with PoS deposit classified as staked tokens entitling for a staking rewards drop.


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