On completion of the voting cycle of a proposal, either one of the following actions take place:
Proposal with no immediate action is accepted/rejected - rewards are distributed to stakeholders who participated towards consensus in the proposal.
Proposal with programmatic trigger accepted - rewards are distributed & the action configured to the category is implemented.
GovBlocks follows a zero-sum approach for reward distribution. That means the rewards for positive contribution are equal to the sum of the the incentives configured within the dApp and any tokens burned because of negative contribution.
The following screenshot highlights the token token balance being changed from 583.70 NXM to 83.70 NXM as the proposal to Burn fraudulent tokens of address 0x7266...5358 is accepted.