All proceeds from the Loki Funding System are paid through funding blocks. Funding block rewards operate similarly to traditional block rewards, as an entirely non-custodial way to distribute Loki. Every funding block contains 1.25% of the overall block reward for the entire funding block period. To construct a valid funding block, miners must be able to assess proposals that have reached the required percentage of votes by using the information that the Service Nodes commit to the blockchain, which contains both the addresses to be paid and the state of all votes. All Service Nodes will validate the miners funding block and discard any funding blocks which pay invalid addresses. If the total sum of approved proposals exceed that which is available in the funding block, the miner will create the funding block to prioritise proposals that were committed to the blockchain earlier. Remaining approved proposals will remain committed to the blockchain until the next funding block.