Staking Rewards
Solana’s staking rewards are distributed from a portion of the network's inflation. These rewards are fixed per epoch and divided among all staked nodes according to their relative stake weight and participation in the network.
Key Factors for Staking Rewards
Staking rewards depend on the following factors:
| Key Factors | Description |
|---|---|
| Inflation Rate | The rewards are influenced by the current inflation rate of the Solana network. |
| Total SOL Staked | The total amount of SOL staked across the network determines the overall rewards pool. |
| Validator Uptime | A validator's uptime plays a crucial role in their eligibility for rewards. Uptime is measured by the number of votes a validator successfully cast during the epoch. |
| Validator Commission | Validators charge a commission fee, which is the percentage of the rewards they take from the network's inflation. The remaining rewards go to the delegators. |
How Rewards are Distributed
- Reward Calculation: At the end of each epoch, rewards are calculated based on each validator’s uptime, participation, and commission. The rewards are then distributed proportionally to the delegated stake.
- Voting and Vote Credits: Validators earn one vote credit for each successful vote. These credits are tallied at the end of the epoch and contribute to the reward calculation.
- Reward Distribution: Rewards are distributed to both delegated stake accounts and validators. These rewards are automatically re-delegated or compounded as active stakes. This means that the rewards are reinvested into the stake, increasing the total amount of staked SOL for that account.
Inflation and Reward Structure
| Annualized Reward Rate | Validators can expect an approximate annualized reward rate of 5%. |
| Inflation Rate | Solana's initial inflation rate is 8% annually, which decreases by 15% each year until it reaches a long-term fixed inflation rate of 1.5% annually. |
| Fixed Rewards | 100% of the inflationary rewards are allocated to delegated stake accounts and validators. |
Epoch-Based Distribution
- Rewards are distributed every epoch (approximately every 2 days).
- Rewards are deposited directly into the stake account that received them.
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Updated about 1 month ago