🎲Algorand SRB
Algorand Staking Rewards Rate (ALGOSRR™) Methodology
ALGOSRR is a benchmark that represents the rewards for each governance period.
ALGOSRR is calculated and published by Staking Rewards via the Algorand Profile and Staking Data API.
| Formula key | Metric name | Description |
|---|---|---|
rp | Reward Pool | The Reward Pool in Algorand's Governance Period #8 consists of 42,000,000,000 ALGO that are yet to be distributed to stakers. This pool is divided into two parts: 24,500,000,000 ALGO reserved for non-DeFi participants and 17,500,000,000 ALGO reserved for DeFi participants. |
st | Staked Tokens | The total number of ALGO tokens bonded ithe Governance Period. |
rc | Reward Cycle | In each Reward Cycle in Algorand's Governance, stakers can participate in voting sessions and are eligible to receive their share of the 42,000,000,000 ALGO Reward Pool. |
t1 | Day Constant | 86400s |
t2 | Year Constant | 365d |
ALGOSRR takes into account all accumulated rewards for the last Governance Period
ALGOSRR operates on a non-compounded basis, meaning it excludes returns generated from the reinvestment of rewards.
Governance Period
A Governance Period in Algorand is a specific time frame during which registered governors can participate in voting sessions to influence the platform's direction and policies. During this time governors vote on various topics and be eligible for rewards from a designated ALGO pool.
The rewards can be claimed at the end of the 90d Governance Period
Observation Period:
The ALGOSSR is determined based on the current reward cycle at the point of evaluation.
This data is then annualized for a comprehensive year-long projection.
Calculation
The calculation happens every 2 hours and is immediately published via Staking Data API.
Limitations
At the beginning of each governance period, all staked tokens will be reset to 0, resulting in a high APR during the initial cycle.
Real Reward Rate (ALGOSRR^R)
The real reward rate calculates the ASSR adjusted for inflation in the network.
| Formula key | Metric name | Description |
|---|---|---|
i | Inflation Rate | The Inflation Rate in Algorand is calculated based on the reward distribution for each governance period. |
Inflation Rate Behaviour
The inflation rate of Algorand can be influenced by governance decisions, which can result in a positive or negative change. The emission of new ALGO tokens during the next cycle can affect the inflation rate, causing it to either increase or decrease.
Other Cosmos metrics calculated by Staking Rewards:
| Metric | Description |
|---|---|
Rewards per Year | The Rewards Per Year refers to the amount of rewards given to delegates in USD on an annual basis. |
Data Sources:
Staking Rewards from indexed Algorand Blocks and RPC Endpoints
References:
📚 Learn more about ALGO Staking
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