⚜️Hedera SRB

HBAR Staking Rewards Benchmark (HBARSRB™) Methodology

HBARSRB is a benchmark representing the mean, annualized staking rate across all active ZETA validators.

HBARSRB is calculated and published by Staking Rewards via the Hedera Profile and Staking Data API.

HBARSRB=((dr+df)ty)/stHBARSRB = ((dr+ df) * t_y)/st
Formula keyMetric nameDescription

dr

Daily Rewards

Fix reward rate per staked HBAR per day.

df

Daily Fees

The total number of HBAR tokens paid as transaction fees on the network.

st

Staked Tokens

The total number of tokens that are currently being staked across Hedera.

tyt_y

Year Constant

365d

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

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

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

Slashing

Although Hedera Hashgraph operates as a PoS system, it does not involve slashing or bonding, so nodes do not face the related loss of liquidity.


Hedera Validator Staking Rewards Rate: HBARSRB(v)

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

HBARSRB(v)=HBARSRB(1p)(1cr)HBARSRB(v) = HBARSRB * (1*p)*(1-cr)
Formula keyMetric nameDescription

p

Performance

The percentage of successfully validated blocks.

cr

Commission Rate

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

Observation Period:

  1. HBARSRB is determined based on the latest generated block 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 Staking Data API.

Limitations

HBARSRB 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.


HBAR Real Reward Rate (HBARSRB^R)

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

HBARSRBR=1+HBARSRB/(1+i)1HBARSRB^R = 1+HBARSRB /(1+i)-1
Formula keyMetric nameDescription

i

Inflation Rate

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

Inflation Rate Behaviour

The release of HBAR tokens into circulation is controlled by a predefined schedule.


Data Sources:


References:


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Last updated on 05/23/2024

Last updated