# Cardano SRB

ADASRB is a benchmark representing the mean, annualized staking rate across all active Cardano validators.

ADASRB is calculated and published by Staking Rewards via the [Cardano Profile](https://www.stakingrewards.com/asset/cardano) and [Data API](https://www.stakingrewards.com/data-api).

> **TL;DR:** Cardano staking rewards are determined by dividing epoch rewards by total active staked tokens and annualizing over 365 days (each epoch is 5 days). Validator-level rewards factor in pool performance, stake amount, and commission rate. Cardano has no slashing mechanism.

$$
ADASRB = 365/5 \* er / ast
$$

<table data-full-width="false"><thead><tr><th width="141">Formula key</th><th width="158">Metric name</th><th>Description</th></tr></thead><tbody><tr><td>er</td><td>Epoch Rewards</td><td>The rewards to be distributed among all staking pools within the protocol. Each epoch lasts 5 days.</td></tr><tr><td>ast</td><td>Active Staked Tokens</td><td>The sum of all staked tokens that are eligible for reward distribution. There is a 2-epoch delay period where new tokens do not qualify for distribution.</td></tr></tbody></table>

#### Slashing

1. Cardano does not have a slashing mechanism.

***

### ADA Validator Staking Reward Rate: SOLSRB(v)

Staking Rewards calculates the ADASRB for each validator based on their individual performance, commission rate, and luck factor.

$$
ADASRB(v) = 365/5 \* pr / pst \*(1 - c)
$$

<table data-full-width="false"><thead><tr><th width="150.33333333333331">Formula key</th><th width="187">Metric name</th><th>Description</th></tr></thead><tbody><tr><td>pr</td><td>Pool Rewards</td><td>The rewards attributed to a specific pool given its uptime, staked tokens, and luck factor.</td></tr><tr><td>pst</td><td>Pool Staked Tokens</td><td>The sum of Self-staked tokens and the Delegated tokens for a specific pool.</td></tr><tr><td>c</td><td>Commission</td><td>The fee imposed by a specific validator to its delegators.</td></tr></tbody></table>

***

#### Observation Period:

1. The ADASRB is determined based on the latest generated block at the point of evaluation.
2. This data is then annualized for a comprehensive year-long projection.

#### Calculation

The calculation happens every 2 hours and is immediately published via [Data API](https://www.stakingrewards.com/data-api).

#### Limitations

1. SOLSRB employs a 365-day convention for annualizing current slot times. This convention remains consistent and does not accommodate adjustments for leap years.

***

### ADA Real Reward Rate: ADASRB^R

The real reward rate calculates the ADASRB adjusted for inflation in the network.

$$
ADASRB^R=1 + ADASRB/(1+ir) -1
$$

<table data-full-width="false"><thead><tr><th width="141">Formula key</th><th width="158">Metric name</th><th>Description</th></tr></thead><tbody><tr><td>ir</td><td>Inflation Rate</td><td>The annual rate at which supply increase. The Cardano inflation rate is approximately 7% per year, leading up to a maximum supply of 45 billion ADA. However, it varies depending on factors such as staking rewards, and the total amount of ADA staked in the network.</td></tr></tbody></table>

***

### Other Cardano metrics calculated by Staking Rewards:

<table data-full-width="false"><thead><tr><th width="212.99999999999994">Metric</th><th>Description</th></tr></thead><tbody><tr><td>Delegated Tokens</td><td>The number of ADA tokens delegated to validators.</td></tr><tr><td>Self Staked Tokens</td><td>The number of ADA tokens staked by validators directly.</td></tr><tr><td>Staking Wallets</td><td>Total number of unique delegations on-chain. It doesn't distinguish based on unique delegator addresses.</td></tr></tbody></table>

#### Data Sources:

* [Staking Rewards](https://www.stakingrewards.com/) from indexed Cardano Blockchain RPC Endpoints

***

#### References:

* <https://www.stakingrewards.com/asset/solana>

***

:books:[ Learn more about ADA Staking](https://www.stakingrewards.com/asset/cardano)

:bar\_chart: [Calculate your ADA Staking Rewards](https://www.stakingrewards.com/calculator?asset=cardano)

:gear: [Access historic Cardano Staking Data via API](https://www.stakingrewards.com/data-api)

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Last updated on 08/27/2024
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