🍀Covalent SRB

Covalent Staking Rewards Benchmark (CXTSRB™) Methodology

CXTSRB is a benchmark representing the mean, annualized staking rate across all active Covalent nodes.

CXTSRB is calculated and published by Staking Rewards via the Covalent Profile and Staking Data API.

CXTSRB = sr*sn*(st_o/st)

Formula key	Metric name	Description
sr	Specimen Reward	The current artifact reward per specimen, set on contract via setBlockSpecimenReward method after governance poll on APY.
sn	Specimen Number	The number of specimens produced per epoch by the Block Specimen Producer.
st	Staked Tokens	The total tokens staked with operators.
$st_o$	Operator Staked Tokens	The single operator stake.

Formula key

Metric name

Description

Specimen Reward

The current artifact reward per specimen, set on contract via setBlockSpecimenReward method after governance poll on APY.

Specimen Number

The number of specimens produced per epoch by the Block Specimen Producer.

Staked Tokens

The total tokens staked with operators.

$st_o$

Operator Staked Tokens

The single operator stake.

CXTSRB 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.

Staking Rewards calculates the CXTSRB for each operator, adjusting by the commission rate.

CXTSRB(v) = CXTSRB*(1-cr)

Formula key	Metric name	Description
cr	Commission Rate	The percentage commission rate the operator has set.

Formula key

Metric name

Description

Commission Rate

The percentage commission rate the operator has set.

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

The calculation happens every 2 hours and is immediately published via Staking Data API.

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

CXTSRB^R=1 + CXTSRB/(1+ir) -1

Formula key	Metric name	Description
ir	Inflation Rate	The annual provisions divided by the circulating supply.

Formula key

Metric name

Description

Inflation Rate

The annual provisions divided by the circulating supply.

Inflation Rate Behavior

The initial staking yield and network rewards are supplied through the Staking Emission Schedule which will be used to supplement network rewards for up to 4 years.