# Subsquid SRB

SQDSRB is a benchmark representing the mean, annualized staking rate across all active Subsquid workers.

SQDSRB is calculated and published by Staking Rewards via the [Subsquid Profile](https://www.stakingrewards.com/asset/subsquid) and [Data API](https://www.stakingrewards.com/data-api).

> **TL;DR:** Subsquid staking rewards are based on a dynamic target reward rate that adjusts according to network utilization and total staked tokens. The rate is distributed per epoch and annualized.

### SQD Staking Rewards Rate: SQDSRB

$$
SQDSRB = rAPR/t\_y \* st \* el
$$

<table><thead><tr><th width="149">Formula key</th><th width="180">Metric name</th><th>Description</th></tr></thead><tbody><tr><td>rAPR</td><td>Target Reward Rate</td><td>The target reward rate. It is a dynamic rate that determines the annual rewards distributed to stakers based on the network's utilization and the total amount of staked tokens.</td></tr><tr><td>st</td><td>Staked Tokens</td><td>The total tokens staked including tokens bonded by workers and delegated by delegators.</td></tr><tr><td>el</td><td>Epoch Length</td><td>The length of the epoch in days.</td></tr><tr><td><span class="math">t_y</span></td><td>Year Constant</td><td>365d</td></tr></tbody></table>

#### Slashing

* SQDSRB 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.

***

### SQD Worker Staking Reward Rate: SQDSRB(v)

Staking Rewards calculates the SQDSRB for each worker based on their individual performance.

$$
SQDSRB(v) = rMAX \* dl \* dt\_1 \* dt\_2
$$

<table><thead><tr><th width="142">Formula key</th><th width="208">Metric name</th><th>Description</th></tr></thead><tbody><tr><td>rMAX</td><td>Maximum Reward Rate</td><td>The maximum potential yield for the epoch.</td></tr><tr><td>dl</td><td>Liveness Factor</td><td>it is calculated as the percentage of the time the worker is self-reported online.</td></tr><tr><td><span class="math">dt_1</span></td><td>Traffic Factor</td><td>Cobb-Douglas type discount factor.</td></tr><tr><td><span class="math">dt_2</span></td><td>Tenure Factor</td><td>It is a long-range liveness factor incentivizing consistent liveness across the epochs.</td></tr></tbody></table>

***

#### Observation Period:

* The SQDSRB is determined based on the latest generated epoch 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 [Data API](https://www.stakingrewards.com/data-api).

#### Limitations

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

***

### SQD Real Reward Rate: SQDSRB^R

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

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

<table><thead><tr><th width="140">Formula key</th><th width="144">Metric name</th><th>Description</th></tr></thead><tbody><tr><td>ir</td><td>Inflation Rate</td><td>The annual provisions divided by the circulating supply.</td></tr></tbody></table>

**Inflation Rate Behavior**

* The inflation rate is fix for the initial 3-year bootstrapping phase. After this period, the reward cap decreases significantly until the community decides on a new inflation schedule through governance.

***

### Other Subsquid metrics calculated by Staking Rewards:

<table><thead><tr><th width="190">Metric</th><th>Description</th></tr></thead><tbody><tr><td>Delegated Tokens</td><td>The number of SQD tokens delegated to workers.</td></tr><tr><td>Self Staked Tokens</td><td>The number of SQD tokens bonded by workers directly.</td></tr><tr><td>Staking Wallets</td><td>The total number of unique delegations on-chain. It doesn't distinguish based on unique delegator addresses.</td></tr></tbody></table>

#### Data Sources:

* [Staking Rewards](https://www.stakingrewards.com/) from indexed Subsquid Blockchain RPC Endpoints

***

#### References:

* <https://docs.sqd.dev/>

***

:books:[ Learn more about SQD Staking](https://www.stakingrewards.com/asset/subsquid)

:bar\_chart: [Calculate your SQD Staking Rewards](https://www.stakingrewards.com/calculator?asset=subsquid)

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

```
Last updated on 08/27/2024
```


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