The rewards for staking NGM tokens come from two sources: transaction fees and inflation of the NGM token supply.
Transaction fees can be paid with NGM or in any of the currency-backed stablecoins and we expect trading activities on the DEX to be the primary source of these.
The NGM inflation is set at 10% of the supply annually. The inflation is applied continuously and distributed pro-rata to staked NGM token holders.
The model eliminates the reliance on transaction costs to sustain operations. This aligns with the design goals of Cosmos Hub and the Internet of Blockchains, as the currency-backed stablecoins can move freely across zones.
The staking rewards and the e-Money token model are detailed further in the presentation e-Money Token Rewards.