The network pays rewards from a portion of the network inflation. The rewards per epoch are fixed and must be evenly divided among all staked nodes according to their relative stake weight (stake proportional) and participation. Staking rewards are based on the current inflation rate, the total number of SOL staked, individual validator uptime , and commission. A validator’s commission fee is the percentage fee paid to validators from network inflation. Validator uptime is defined by a validator’s voting. One vote credit is received for each successful validator vote, and votes are tallied at the end of the epoch for reward calculation.
Validators can receive approximately a 5% annualized reward rate. Solana’s initial inflation rate is 8% annually, decreasing by 15% YOY, reaching a long-term fixed inflation rate of 1.5% annually. 100% of the inflationary issuances (rewards) are delivered to delegated stake accounts and validators. Rewards are distributed every epoch (~2 days) and deposited into the stake account that received them. Stake rewards are automatically re-delegated/compounded as active stakes.
Updated 2 months ago