How Are Data Providers Incentivized to Report Accurate and Timely Data?

Data providers are typically incentivized through a fee structure paid by the protocols consuming the data. A portion of these fees is distributed to the providers based on the quality and timeliness of their submissions.

In some models, they may also be subject to reputational scoring or staking requirements, where poor performance or malicious reporting leads to a loss of future fees or staked collateral.