🔷Ethereum SRB
ETH Staking Rewards Benchmark (ETHSRB™) Methodology
ETHSRB is a benchmark representing the mean, annualized staking rate across all active Ethereum validators.
ETHSRB is calculated and published by Staking Rewards via the Ethereum Profile and Staking Data API.
| Formula key | Metric name | Description |
|---|---|---|
cle | Consensus Layer Earnings | Validators earn rewards for proposing and attesting to blocks in this layer. |
ele | Execution Layer Earnings | Transaction fees (tips/priority fees) earned by validators post-EIP-1559 implementation |
st | Staked Tokens | The total number of ETH tokens staked with active validators. |
Learn more about the Consensus and Execution Layer Rewards in the section below
ETHSRB takes into account all accumulated rewards, whether they have been claimed or remain unclaimed.
ETHSRB operates on a non-compounded basis, meaning it excludes returns generated from the reinvestment of rewards.
EETHSRB is based on an average validator effectiveness.
Consensus Layer Earnings
The consensus layer earnings per validator can be broken down again into the following components.
| Formula key | Metric name | Description |
|---|---|---|
bpr | Block Proposal Rewards | Block Proposal Rewards are the specific earnings validators receive for successfully proposing a new block, serving as an incentive for active participation in maintaining the Ethereum network's integrity. |
cr | Attestant Rewards | Attestant Rewards are the earnings validators receive for attesting to the validity and correctness of blocks proposed by others, supporting the Ethereum network's security and consensus mechanism. |
sp | Slashing Penalties | Slashing Penalties are severe fines imposed on Ethereum validators for serious violations such as double signing or similar malicious activities, serving as a deterrent to preserve the network's security and reliability. |
op | Other Penalties | Other Penalties include Inactivity Leak for validators offline in consensus, missed Proposer Rewards due to failure in block proposal, reduced earnings from Whistleblower Reward Adjustments, and Surround Vote Penalties for violating specific voting rules in Ethereum's consensus mechanism. |
Execution Layer Earnings
The execution layer earnings per validator can be broken down again into the following components.
| Formula key | Metric name | Description |
|---|---|---|
te | Tips Earned | This metric reflects the optional fees paid by users to Ethereum validators for prioritizing transaction processing. |
me | MEV Earned | This metric measures the additional earnings Ethereum validators gain from strategically including, excluding, or ordering transactions within a block, over and above standard block rewards and gas fees. |
Observation Period:
The ETHSRB is determined based on the latest 24h 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
ETHSRB does not guarantee the specified reward rate for individual validators, as it is subject to various factors such as network conditions, validator performance, and adherence to protocol rules.
ETHSRB's annual projections are estimates and may fluctuate due to changes in network participation, Ethereum usage patterns, and evolving network dynamics, making long-term predictions inherently uncertain.
ETH Real Reward Rate (ETHSRB^R)
The real reward rate calculates the ETHSRB adjusted for inflation in the network.
| Formula key | Metric name | Description |
|---|---|---|
i | Inflation Rate | Inflation refers to the increase in the total supply of Ethereum due to block rewards distributed to validators for block production and attestations, adjusted by the burning of transaction fees as per EIP-1559, which can impact the net inflation rate. |
Inflation Rate Behaviour
Ethereum's inflation rate is influenced by its block reward system and the burning of a portion of transaction fees as per EIP-1559. This EIP introduced a base fee for transactions, which is algorithmically adjusted and burned, potentially reducing the overall circulating supply of ETH. However, the inflation rate is not solely dictated by EIP-1559; it also depends on network congestion and block size. Blocks in Ethereum can now vary in size, with a range between 1 to 30 million gas units, but the protocol targets an optimal usage of 15 million gas units per block. This flexible block size mechanism is a crucial factor in determining the base fee and, consequently, affects the inflation dynamics. While EIP-1559 introduces elements that could theoretically lead to deflationary pressure on Ethereum's supply, the overall inflation rate is still subject to a range of factors including network demand and the amount of ETH staked.
ETH LST Staking Rewards Benchmark ETHSRB(lst)
ETHLSTSRB is a benchmark representing the mean, annualized staking rate for each Ethereum Liquid Staking Reward Option.
| Formula key | Metric name | Description |
|---|---|---|
aerv | Average Exchange Ratio Variation | Average Exchange Ratio Variation is calculated by averaging the ratio between the difference of the exchange ratio at the present time and the last exchange ratio recorded, and the difference, in seconds, of their recorded timestamps. |
lpf | LST Provider Fee | This is the fee charged by LST providers. |
Day Constant | 86400s | |
Year Constant | 365d |
By averaging all data points from our recorded history, we are able to iron out outlier values that could give an unrealistic reward rate expectation.
ETHSRB(lst) operates on a non-compounded basis, meaning it excludes returns generated from the reinvestment of rewards.
ETHSRB(lst) does not take into account the inflation rate of the asset. Please refer to ETHSRB^R for this.
Data Sources:
Staking Rewards from indexed Ethereum Blockchain RPC Endpoints
References:
📚 Learn more about ETH Staking
📊 Calculate your ETH Staking Rewards
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