⚛️Cosmos Hub SRB

Cosmos Hub Staking Rewards Benchmark (ATOMSRB™) Methodology

ATOMSRB is a benchmark representing the mean, annualized staking rate across all active Cosmos validators.

ATOMSRB is calculated and published by Staking Rewards via the Cosmos Profile and Staking Data API.

Other assets utilizing Cosmos SDK, which Staking Rewards integrate, reference ATOMSRB for reward rate calculations. Some assets might introduce proprietary changes or include additional parameters. The differences are mentioned for calculations involving extra or modified variables.


ATOM Staking Rewards Rate: ATOMSRB

ATOMSRB=(ap+dfty)(1ct)/stATOMSRB = (ap + df * t_y) * (1 - ct) / st
Formula Key
Metric Name
Description

ap

Annual Provisions

The total amount of tokens emitted per year.

df

Daily Fees

The total number of tokens paid as transaction fees.

ct

Community Tax

Community Tax is the percentage of inflation rewards and fees that are sent to the community pool at each block.

st

Staked Tokens

The total number of tokens bonded with active, non-jailed validators.

tyt_y

Year Constant

365d

  • ATOMSRB takes into account all accumulated rewards, whether they have been claimed or remain unclaimed.

  • ATOMSRB operates on a non-compounded basis, meaning it excludes returns generated from the reinvestment of rewards.

  • ATOMSRB is based on an assumption of 100% validator efficiency. For a SRB Reward Rate adjusted according to individual validator performance, please refer to ATOMSRB(v).

Slashing

  • ATOMSRB does not factor in the possibility of slashing occurrences.

  • It's important to note that if validator entities face slashing, rewards will increase, as the slashed tokens are reallocated among validators.

Expected vs. Actual Block Time

  • The inflation metrics retrieved from RPC endpoints may not depict the genuine inflation rate. This discrepancy arises due to the actual block time being significantly quicker than the protocol's targeted time.

  • The difference between expected and actual block time influences the annual provisions which affects rewards.

  • Consequently, there's an elevation in blocks generated annually, leading to increased inflation.

  • The ATOMSRB methodology adjusts for this variation, prioritizing the actual block time over the anticipated block time to determine accurate inflation and reward rates.

Observation Period

  • The ATOMSRB 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 Staking Data API.

Limitations

  • ATOMSRB excludes rewards accrued from Interchain/Replicated Security.

  • ATOMSRB employs a 365-day convention for annualizing current block provisions and daily fees. This convention remains consistent and does not accommodate adjustments for leap years.


ATOM Validator Staking Rewards Rate: ATOMSRB(v)

Staking Rewards calculates the ATOMSRB for each validator based on their individual performance and commission rate.

ATOMSRB(v)=ATOMSRB(1p)(1cr)ATOMSRB(v) = ATOMSRB * (1*p)*(1-cr)
Formula key
Metric name
Description

p

Performance

The percentage of successfully validated blocks over the last 10,000 assigned blocks for this validator.

cr

Commission Rate

The percentage commission rate the validator has set as a delegation fee for all delegators.


ATOM Real Reward Rate: ATOMSRB^R

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

ATOMSRBR=1+ATOMSRB/(1+ir)1ATOMSRB^R = 1+ATOMSRB /(1+ir)-1
Formula key
Metric name
Description

ir

Inflation Rate

The annual provisions are adjusted by the actual block time of the last 24 hours and divided by the total supply in the network.

Inflation Rate Behavior

  • The inflation is also subject to a rate change (positive or negative) depending on the distance from the desired ratio (67%). The maximum rate change possible is defined to be 13% per year, however the annual inflation is capped as between 7% and 20%.


Other Cosmos Hub metrics calculated by Staking Rewards

Metric
Description

Fee Revenue

The Fee Revenue reflects the annualized transaction fees, derived from the fees accumulated within the last 24 hours, evaluated at the prevailing USD rate.

Delegated Tokens

The number of tokens delegated to validators.

Self Staked Tokens

The number of tokens staked by validators directly.

Staking Wallets

This metric refers to the total quantity of distinct delegations made. It doesn't distinguish based on unique delegator addresses and excludes considerations of any minimum delegation thresholds.


Data Sources:


References:


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Last updated on 09/02/2024

Last updated