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🟣Monad SRB

Learn how Monad staking rewards are calculated. MONSRB formula covers the fixed 25 MON block reward, block time, and total staked tokens.

MONSRB is a benchmark representing the mean, annualized staking rate across all active Monad validators.

MONSRB is calculated and published by Staking Rewards via the Monad Profile and Data API.

TL;DR: Monad staking rewards come from a fixed block reward of 25 MON per block. The reward rate equals block reward times blocks per year divided by total staked MON. The rate is inversely proportional to total staked tokens.

MONSRB=blockReward×blocksPerYear/totalStakedTokensMONSRB = blockReward \times blocksPerYear / totalStakedTokens
Formula key
Metric name
Description

blockReward

Block Reward

The fixed block reward of 25 MON per block, as defined by the Monad protocol.

blocksPerYear

Blocks Per Year

The theoretical number of blocks produced per year, calculated as: 365 * 24 * 60 * 60 / blockTime, where blockTime is the average block time sourced from the Monad RPC.

totalStakedTokens

Total Staked Tokens

The sum of all MON tokens staked across active validators, sourced from the gmonads.com validator API.

  • MONSRB is non-compounded and represents the staking rate before reinvesting rewards.

  • Includes both claimed and unclaimed staking rewards.

  • The fixed 25 MON block reward provides a predictable base for the reward rate calculation.

  • The reward rate is inversely proportional to total staked tokens: as more MON is staked, the per-token reward decreases.

Slashing

  1. MONSRB does not factor in the possibility of slashing occurrences.

  2. Monad implements slashing via the staking precompile contract for validator misbehavior.


MON Validator Staking Reward Rate: MONSRB(v)

Staking Rewards calculates the MONSRB for each validator by adjusting the asset-level reward rate for the validator's commission.

MONSRB(v)=MONSRB×(1commission)MONSRB(v) = MONSRB \times (1 - commission)
Formula key
Metric name
Description

commission

Commission

The validator's commission rate, sourced from the staking precompile contract at 0x0000000000000000000000000000000000001000 via the getValidator method. Commission is stored as a uint256 value scaled by 1e18 (i.e., 1e18 = 100%).


Observation Period:

  1. The MONSRB is determined based on the latest block data at the point of evaluation.

  2. Block time is derived from the current average block production rate.

  3. 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.

Limitations

  1. MONSRB employs a 365-day convention for annualizing block rewards. This convention remains consistent and does not accommodate adjustments for leap years.

  2. The calculation assumes a constant 25 MON block reward. Protocol upgrades may change this value.

  3. Block time variability can affect the actual annualized reward. The calculation uses the current observed block time.

  4. Individual validator rates depend on their commission setting, which can be changed by the validator operator.

MON Real Reward Rate: MONSRB^R

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

MONSRBR=(1+MONSRB)/(1+ir)1MONSRB^R = (1 + MONSRB) / (1 + ir) - 1
Formula key
Metric name
Description

ir

Inflation Rate

The annualized inflation rate, computed as: annualRewards / totalSupply, where annualRewards = blockReward * blocksPerYear and totalSupply is sourced from CoinGecko market data.

Inflation Rate Behavior

Monad's inflation is driven by a fixed 25 MON block reward per block. The effective inflation rate depends on the block production rate and total supply. As total supply grows over time while block rewards remain fixed, the inflation rate naturally decreases. Unlike chains with a programmatic inflation schedule, Monad's inflation is a direct function of the fixed block reward and block production cadence.


Other Monad metrics calculated by Staking Rewards:

Metric
Description

Staked Tokens

Total MON tokens staked across all active validators.

Total Validators

The number of active validators on the Monad network.

Commission

Per-validator commission rate, sourced from the staking precompile contract.

Annual Rewards

Total MON tokens distributed as staking rewards per year, based on block reward and block production rate.

Data Sources:


References:


📚 Learn more about MON Staking

📊 Calculate your MON Staking Rewards

⚙️ Access historic Monad Staking Data via API

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