🔬Cardano SRB

ADA Staking Rewards Benchmark (ADASRB™) Methodology

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 and Staking Data API.

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

Formula key	Metric name	Description
er	Epoch Rewards	The rewards to be distributed among all staking pools within the protocol. Each epoch lasts 5 days.
ast	Active Staked Tokens	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.

Slashing

1. Cardano does not have a slashing mechanism.

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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.

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

Formula key	Metric name	Description
pr	Pool Rewards	The rewards attributed to a specific pool given its uptime, staked tokens, and luck factor.
pst	Pool Staked Tokens	The sum of Self-staked tokens and the Delegated tokens for a specific pool.
c	Commission	The fee imposed by a specific validator to its delegators.

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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 Staking 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.

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ADA Real Reward Rate: ADASRB^R

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

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

Formula key	Metric name	Description
ir	Inflation Rate	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.

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Other Cardano metrics calculated by Staking Rewards:

Metric	Description
Delegated Tokens	The number of ADA tokens delegated to validators.
Self Staked Tokens	The number of ADA tokens staked by validators directly.
Staking Wallets	Total number of unique delegations on-chain. It doesn't distinguish based on unique delegator addresses.

Data Sources:

• Staking Rewards from indexed Cardano Blockchain RPC Endpoints

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References:

• https://www.stakingrewards.com/asset/solana

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Last updated on 08/27/2024