🔬Cardano SRB

Learn how Cardano staking rewards are calculated. ADASRB formula covers epoch rewards, active staked tokens, pool performance, and commission rates.

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 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

Formula key

Metric name

Description

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

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)

Formula key

Metric name

Description

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.

Commission

The fee imposed by a specific validator to its delegators.

Observation Period:

The ADASRB is determined based on the latest generated block 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 Data API.

Limitations

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

Formula key

Metric name

Description

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.