✈️Kyve SRB

Kyve Network Staking Rewards Benchmark (KYVESRB™) Methodology

Kyve Network consists of two layers: the consensus layer and the protocol layer. Each layer has its set of validators. Consensus validators are responsible for committing new blocks in the blockchain, while protocol validators run on a specific data pool and are responsible for validating and archiving a specific data source. Therefore, each layer has its own Staking Rewards Benchmark Methodology.

KYVESRB(c) is a benchmark representing the mean, annualized staking rate across all active Kyve consensus validators.

KYVESRB(d) is a benchmark representing the mean, annualized staking rate across all active Kyve data (protocol) validators.

KYVESRB is calculated and published by Staking Rewards via the Kyve Network Profile and Staking Data API.

KYVE Staking Rewards Rate: KYVESRB

$$KYVESRB = (ap + df * t_y) * (1 - ct) / st$$

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.
$t_y$	Year Constant	365d

The calculations are derived from the ATOMSRB documentation, serving as the foundational reference to ensure the accuracy of relevant metrics.

For more information visit the ATOMSRB docs.

Cosmos Hub SRB | Staking Data

ATOM Staking Rewards Rate

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

Slashing

• KYVESRB 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.

Limitations

• KYVESRB excludes rewards accrued from Interchain/Replicated Security.

• KYVESRB 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.

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KYVE Consensus Validator Staking Reward Rate: KYVESRB(c)

Staking Rewards calculates the KYVESRB(c) for each consensus validator based on their individual performance and commission rate.

$$KYVESRB(c) = KYVESRB * (1*p)*(1-cr)$$

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.

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KYVE Data Validator Staking Reward Rate: KYVESRB(d)

Staking Rewards calculates the KYVESRB(d) for each data validator based on rewards and commission rate.

$$KYVESRB(d) = (tbr-tr-sr)*(1-cr)$$

Formula key	Metric name	Description
tbr	Total Bundle Reward	The total bundle reward paid out from the pool. This reward depends on the size of the data uploaded, the specified operating cost of the pool, and the share of the inflation the pool receives.
tr	Treasury Reward	The network fee deducted from the total bundle reward.
sr	Storage Reward	The reward paid to the uploader to cover his storage costs.
cr	Commission Rate	The percentage commission rate the validator has set as a delegation fee for all delegators.

Observation Period:

• The KYVESRB(c) and KYVESRB(d) are 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.

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KYVE Real Reward Rate: KYVESRB^R

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

$$KYVESRB^R=1 + KYVESRB/(1+ir) -1$$

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

Inflation Rate Behavior

• KYVE targets an 80% bonded ratio, adjusting inflation based on the staked token percentage. Inflation decreases with more tokens staked and increases with fewer. The rate is capped within set limits, and only governance can modify these parameters or introduce mechanisms like burning transaction fees to control inflation.

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Other Kyve metrics calculated by Staking Rewards:

Metric	Description
Delegated Tokens	The number of KYVE tokens staked to block producers.
Self Staked Tokens	The number of KYVE tokens bonded by workers 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:

• Staking Rewards from indexed Kyve Blockchain RPC Endpoints

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References:

• https://docs.kyve.network/

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Last updated on 09/13/2024