🗣️Metis SRB

Learn how Metis staking rewards are calculated. METISSRB formula covers 7-day reward accrual, average staked tokens, and annualized sequencer yield.

METISSRB is a benchmark representing the mean, annualized staking rate across all active Metis validators.

METISSRB is calculated and published by Staking Rewards via the Metis Profile and Data API.

TL;DR: Metis staking rewards are calculated from the amount of rewards accrued over a 7-day period, divided by the 7-day average of sequencer staked tokens, then annualized by multiplying by 52 weeks.

METIS Staking Rewards Rate: METISSRB

METISSRB = trd / ast*t_w

Formula key

Metric name

Description

trd

Total Rewards Difference

The amount of rewards accrued over the 7-day period.

ast

Average Staked Tokens

The 7-day average of sequencer's staked tokens.

$t_w$

Week Constant

52w

Slashing

METISSRB 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.

METIS Validator Staking Reward Rate: METISSRB(v)

Token holders cannot delegate assets directly to sequencers, therefore sequencers don't distribute rewards by design. Unless the sequencer is a liquid staking provider.

METISSRB(v) = METISSRB

Observation Period:

The METISSRB is 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 1o minutes and is immediately published via Data API.

Limitations

METISSRB excludes rewards accrued from on-chain fees.
METISSRB employs a 365-day convention for annualizing current slot times. This convention remains consistent and does not accommodate adjustments for leap years.

METIS Real Reward Rate: METISSRB^R

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

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

Formula key

Metric name

Description

Inflation Rate

The annual provisions divided by the circulating supply.

Inflation Rate Behavior

Metis inflation is influenced by Sequencer Mining, which allocates 3M METIS from the Ecosystem Development Fund to staking rewards. The Mining Rewards Rate is set at 20% for the first 12 months to incentivize participation in network security.