> For the complete documentation index, see [llms.txt](https://docs.stakingrewards.com/staking-data/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.stakingrewards.com/staking-data/methodologies/ethereum-srb.md).

# Ethereum SRB

Learn how Ethereum staking rewards are calculated. ETHSRB formula covers consensus and execution layer rewards, validator performance, tips, and MEV yield.

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](https://www.stakingrewards.com/asset/ethereum-2-0) and [Data API](https://www.stakingrewards.com/data-api).

> **TL;DR:** Ethereum staking rewards come from two sources: consensus layer earnings (block proposals + attestations) and execution layer earnings (priority tips + MEV). The reward rate equals the sum of both layers divided by total staked ETH. Validators can be penalized through slashing or inactivity leaks.

$$
ETHSRB = (cle + ele) / st
$$

<table data-full-width="false"><thead><tr><th width="141">Formula key</th><th width="158">Metric name</th><th>Description</th></tr></thead><tbody><tr><td>cle</td><td>Consensus Layer Earnings</td><td>Validators earn rewards for proposing and attesting to blocks in this layer.</td></tr><tr><td>ele</td><td>Execution Layer Earnings</td><td>Transaction fees (tips/priority fees) earned by validators post-EIP-1559 implementation</td></tr><tr><td>st</td><td>Staked Tokens</td><td>The total number of ETH tokens staked with active validators.</td></tr></tbody></table>

{% hint style="info" %}
**Learn more about the Consensus and Execution Layer Rewards in the section below**
{% endhint %}

* 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.

$$
cle = bpr + cr - sp - op
$$

<table data-full-width="false"><thead><tr><th width="147">Formula key</th><th width="143">Metric name</th><th>Description</th></tr></thead><tbody><tr><td>bpr</td><td>Block Proposal Rewards</td><td>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.</td></tr><tr><td>cr</td><td>Attestant Rewards</td><td>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.</td></tr><tr><td>sp</td><td>Slashing Penalties</td><td>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.</td></tr><tr><td>op</td><td>Other Penalties</td><td>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.</td></tr></tbody></table>

***

### Execution Layer Earnings

The execution layer earnings per validator can be broken down again into the following components.

$$
ele = te + me
$$

<table data-full-width="false"><thead><tr><th width="147">Formula key</th><th width="139">Metric name</th><th>Description</th></tr></thead><tbody><tr><td>te</td><td>Tips Earned</td><td>This metric reflects the optional fees paid by users to Ethereum validators for prioritizing transaction processing.</td></tr><tr><td>me</td><td>MEV Earned</td><td>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.</td></tr></tbody></table>

***

#### Observation Period:

1. The ETHSRB is determined based on the latest 24h 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 [Data API](https://www.stakingrewards.com/data-api).

{% hint style="info" %}

#### 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.
  {% endhint %}

***

### ETH Real Reward Rate (ETHSRB^R)

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

$$
ETHSRB^R = 1+ETHSRB /(1+i)-1
$$

<table data-full-width="false"><thead><tr><th width="150.33333333333331">Formula key</th><th width="187">Metric name</th><th>Description</th></tr></thead><tbody><tr><td>i</td><td>Inflation Rate</td><td>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.</td></tr></tbody></table>

{% hint style="info" %}

#### 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](https://consensys.io/blog/what-is-eip-1559-how-will-it-change-ethereum) 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.
{% endhint %}

***

### ETH LST Staking Rewards Benchmark ETHSRB(lst)

ETHSRB(lst) is a benchmark representing the annualized staking rate for each Ethereum Liquid Staking Reward Option.

A liquid staking token pays its holder through the rising redemption value of the token against ETH, not through new tokens arriving in the holder's wallet. ETHSRB(lst) therefore measures the growth of that redemption value across an observation window and annualizes it.

$$
ETHSRB(lst) = (er\_t / er\_0)^{t\_y/\Delta t} - 1
$$

<table data-full-width="false"><thead><tr><th width="141">Formula key</th><th width="158">Metric name</th><th>Description</th></tr></thead><tbody><tr><td><span class="math">er_t</span></td><td>Exchange Ratio</td><td>The current redemption value of one LST unit in ETH, read from the token's own on-chain rate function.</td></tr><tr><td><span class="math">er_0</span></td><td>Past Exchange Ratio</td><td>The same exchange ratio observed at the start of the window, read at a historical block or from the recorded exchange ratio history.</td></tr><tr><td><span class="math">\Delta t</span></td><td>Elapsed Time</td><td>The measured time in seconds between the two observations, taken from the timestamps at which each ratio was recorded.</td></tr><tr><td><span class="math">t_y</span></td><td>Year Constant</td><td>365d (31,536,000s)</td></tr></tbody></table>

* The growth factor is **relative** — the ratio of the two exchange ratios, not the difference between them. An absolute difference is not a rate: it overstates the result by a factor equal to the exchange ratio itself, which for a mature LST sits meaningfully above 1.0.
* $$\Delta t$$ is **measured** from the timestamps of the observations themselves rather than inferred from an assumed block interval, so the rate stays correct when block production drifts or a source returns a ratio older than requested.
* The exponent compounds the observed growth over the year, which is the behaviour a holder actually experiences: the exchange ratio grows on its own accrued value, with no claim or restake step.

{% hint style="info" %}

#### Provider fees are already reflected — ETHSRB(lst) is a net rate

ETHSRB(lst) carries **no separate provider fee term**.

An LST's exchange ratio rises only by the rewards that actually reach the token holder. The provider's commission is taken out of staking rewards before they reach the pool backing the token — whether deducted at distribution or realized by minting shares to the provider — so exchange ratio growth is a post-fee quantity by construction. Subtracting the fee a second time would double-count it.

This is measurable. For wbETH, whose provider charges a 10% commission, independent validator-level measurement of the underlying validator set shows **2.62%** gross, while the on-chain exchange ratio grows at **2.37884%** annualized over 90 days. The ratio of the two is **0.908**, matching the published commission to within measurement noise. Applying (1 − fee) again would publish **2.141%** — understating the rate the holder receives by roughly 0.24 percentage points, and falling below the fee-adjusted gross rate.

A second reward option confirms the mechanism at a different fee level and by a different route: osETH's rate contract deducts accrued treasury assets from total assets *before* dividing to produce the rate, so its realized on-chain growth divides out against its gross reward rate at exactly (1 − 5%), its published commission.

The same rule applies to reward options whose rate is sourced from a provider-published APR instead of the exchange ratio: published LST APRs are quoted net of the provider's commission and are used as reported.

The commission is not discarded. It is published separately as Commission, and it is what Fee Revenue is derived from — by grossing the net rate back up before applying the fee:

$$
fr = st \* (ETHSRB(lst) / (1 - lpf)) \* lpf
$$

where $$fr$$ is Fee Revenue, $$st$$ is Staked Tokens and $$lpf$$ is the LST Provider Fee.
{% endhint %}

{% hint style="info" %}

#### Staked Tokens and AuM are denominated in ETH, not in LST units

A value-accruing LST holds its share count still and lets each share become redeemable for a growing amount of ETH. Its total supply is therefore a count of **shares**, not a quantity of ETH, and the two diverge by exactly the exchange ratio. Staked Tokens for a liquid staking reward option is the ETH-denominated figure:

$$
st = ts \* er\_t
$$

<table data-full-width="false"><thead><tr><th width="141">Formula key</th><th width="158">Metric name</th><th>Description</th></tr></thead><tbody><tr><td><span class="math">st</span></td><td>Staked Tokens</td><td>The ETH backing the reward option, i.e. what the outstanding LST supply is collectively redeemable for.</td></tr><tr><td><span class="math">ts</span></td><td>Total Supply</td><td>The LST's own outstanding share count, denominated in LST units and published unconverted under its own key.</td></tr><tr><td><span class="math">er_t</span></td><td>Exchange Ratio</td><td>The current redemption value of one LST unit in ETH — the same quantity the rate formula above uses.</td></tr></tbody></table>

Assets Under Management then follows from Staked Tokens and the ETH spot price:

$$
aum = st \* p
$$

* **The exchange ratio is applied exactly once, and only in** $$st$$**.** AuM multiplies the already-converted Staked Tokens by price — never the raw share count, and never the share count and the ratio again. Deriving AuM independently from total supply is the error this rule exists to prevent: applying the ratio in both places squares it, and applying it in neither understates both figures by the whole accrued premium. For a mature LST that premium is material — an exchange ratio of 1.0855 makes the difference between the two mistakes a factor of roughly 1.18.
* **Total Supply is published unconverted**, in LST units, under its own key. It is the share count and is correct as denominated; the conversion belongs to Staked Tokens alone.
* The ratio is read live from the token's own on-chain rate function. Where that read fails, Staked Tokens and AuM are **left absent rather than published against an assumed ratio of 1** — a pinned ratio silently understates every ETH-denominated figure and inverts Peg Deviation, which divides by it.
  {% endhint %}

***

#### Observation Period:

1. ETHSRB(lst) is evaluated over trailing windows drawn from 1, 7, 14, 30 and 90 days, each published in its own right as Reward Rate 1d / 7d / 14d / 30d / 90d. Which windows a given reward option publishes depends on how far back its exchange ratio can be resolved and how often the provider updates it.
2. The headline ETHSRB(lst) is the **longest window up to 30 days** that resolved for that reward option. Windows longer than 30 days are published alongside as reference series and do not feed the headline rate, so that a single anomalous reading cannot dominate the published rate for a full quarter.
3. Shorter windows are used only when longer ones cannot be resolved, which keeps the headline rate from being driven by the daily granularity of providers that update their exchange ratio once per day.

#### Calculation

The calculation happens every 2 hours and is immediately published via [Data API](https://www.stakingrewards.com/data-api).

{% hint style="info" %}

#### Limitations

* ETHSRB(lst) reflects the growth of the exchange ratio over a trailing window and is not a forward guarantee; it moves with validator performance, network conditions and the provider's fee policy.
* ETHSRB(lst) does not take into account the inflation rate of the asset. Please refer to ETHSRB^R for this.
* A window only resolves if a past exchange ratio is available for it. Newly listed reward options publish short windows first and longer ones as history accumulates.
* A subset of Ethereum liquid staking reward options is still being migrated to the compounding relative form above, and currently publishes a non-compounded rate derived from an absolute difference between two exchange ratios. Because an absolute difference is not normalized by the starting ratio, those rates read high roughly in proportion to the token's exchange ratio — about 18% high at an exchange ratio of 1.19 — until the migration completes.
  {% endhint %}

***

#### Data Sources:

* [Staking Rewards](https://www.stakingrewards.com/) from indexed Ethereum Blockchain RPC Endpoints
* Liquid staking token contracts — exchange ratio and total supply, read on-chain at current and historical blocks. The same two reads feed both the ETHSRB(lst) window calculation and the ETH-denominated Staked Tokens and AuM figures.
* Liquid staking provider APR endpoints — for reward options that publish their own net rate
* CoinGecko — price and supply data

***

#### References:

* <https://ethereum.org/en/developers/docs/consensus-mechanisms/>
* <https://www.stakingrewards.com/asset/ethereum-2-0>

***

:books: [Learn more about ETH Staking](https://www.stakingrewards.com/asset/ethereum-2-0)

:bar\_chart: [Calculate your ETH Staking Rewards](https://www.stakingrewards.com/calculator?asset=ethereum-2-0)

:gear: [Access historic Ethereum Staking Data via API](https://www.stakingrewards.com/data-api)

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Last updated on 09/12/2026
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