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🥖Tezos SRB

Learn how Tezos staking rewards are calculated. XTZSRB formula covers max block rewards, endorsement slots, blocks per year, and total baking power.

XTZSRB is a benchmark representing the mean, annualized staking rate across all active Tezos bakers.

XTZSRB is calculated and published by Staking Rewards via the Tezos Profile and Data API.

TL;DR: Tezos staking rewards are based on maximum theoretical block rewards (block reward + bonus slots + endorsement rewards) multiplied by blocks per year, divided by total baking power. Baker-level rates factor in performance and commission.

XTZSRB=maxRewardsPerBlock×blocksPerYear/totalBakingPowerXTZSRB = maxRewardsPerBlock \times blocksPerYear / totalBakingPower
Formula key
Metric name
Description

maxRewardsPerBlock

Max Rewards Per Block

The maximum rewards that can be earned per block, calculated as: blockReward + (blockBonusPerSlot * (endorsersPerBlock - consensusThreshold)) + (endorsersPerBlock * endorsementRewardPerSlot). These values are sourced from the TzKT protocol constants and current cycle data.

blocksPerYear

Blocks Per Year

The theoretical number of blocks produced per year, calculated as: 365 * 24 * 60 * 60 / timeBetweenBlocks, where timeBetweenBlocks is sourced from the Tezos protocol constants.

totalBakingPower

Total Baking Power

The total baking power across all active bakers in the current cycle, sourced from TzKT cycle data. Baking power determines each baker's share of block production rights.

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

  • Includes both claimed and unclaimed baking and endorsement rewards.

  • Uses maximum theoretical rewards per block, representing the optimal case where all endorsement slots are filled.

  • The benchmark reflects the protocol's reward parameters as defined by the current Tezos protocol upgrade.

Slashing

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

  2. Tezos implements slashing for double-baking and double-endorsement violations. Slashed amounts are burned.


XTZ Baker Staking Reward Rate: XTZSRB(v)

Staking Rewards calculates the XTZSRB for each baker based on their actual rewards from the previous completed cycle.

XTZSRB(v)=(rewardsPerBlockv×blocksPerYear/bakingPowerv)×(1commission)×performanceXTZSRB(v) = (rewardsPerBlock_v \times blocksPerYear / bakingPower_v) \times (1 - commission) \times performance
Formula key
Metric name
Description

rewardsPerBlock_v

Validator Rewards Per Block

The baker's total rewards (block rewards + endorsement rewards + block fees) from the previous completed cycle, divided by blocks per cycle. Sourced from TzKT baker rewards API.

bakingPower_v

Baker's Baking Power

The baker's individual baking power in the previous cycle, sourced from TzKT.

commission

Commission

The baker's fee rate. Primary source: on-chain edgeOfBakingOverStaking parameter (in billionths). Fallback: Baking Bad v3 API for legacy bakers.

performance

Performance

The baker's block production and attestation performance, calculated as: (actualBlocks / expectedBlocks + actualAttestations / expectedAttestations) / 2, capped at 1.0. Sourced from TzKT baker rewards data.

Note: Performance data requires both expected and actual block/attestation counts to be available from TzKT. If unavailable, the performance factor is omitted: XTZSRB(v) = (rewardsPerBlock_v * blocksPerYear / bakingPower_v) * (1 - commission).


Observation Period:

  1. The XTZSRB is determined based on the current protocol constants and cycle data at the point of evaluation.

  2. Validator-level rates are based on the most recently completed Tezos cycle.

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

  2. XTZSRB uses the maximum theoretical rewards per block. Actual rewards may be lower if endorsement slots are not fully utilized across the network.

  3. Individual baker rates depend on actual block production and attestation performance, which can vary cycle to cycle.

  4. The benchmark assumes the current protocol parameters remain constant for the projection period. Protocol upgrades may change reward parameters.

XTZ Real Reward Rate: XTZSRB^R

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

XTZSRBR=(1+XTZSRB)/(1+ir)1XTZSRB^R = (1 + XTZSRB) / (1 + ir) - 1
Formula key
Metric name
Description

ir

Inflation Rate

The annualized inflation rate, computed as: totalCreatedPerYear / totalSupply, where totalCreatedPerYear = (maxRewardsPerBlock + lbSubsidyPerBlock) * blocksPerYear and totalSupply is sourced from TzKT.

Inflation Rate Behavior

Tezos inflation is determined by the protocol's block reward schedule, which includes both baking rewards and liquidity baking (LB) subsidies. The total annual token creation combines the maximum block rewards (baking + endorsement) and the LB subsidy per block. The LB subsidy is calculated as 5,000,000 mutez * timeBetweenBlocks / 60. Tezos inflation parameters can change with each protocol upgrade through the on-chain governance process.


Other Tezos metrics calculated by Staking Rewards:

Metric
Description

Delegated Tokens

The number of XTZ tokens delegated to bakers, including both own and external delegations.

Self Staked Tokens

The number of XTZ tokens staked by bakers directly, including own staked balance.

Staking Wallets

Total number of delegators per baker, sourced from TzKT delegates API (numDelegators).

Total Baking Power

Aggregate baking power across all active bakers in the current cycle.

Fee Revenue

Annualized transaction fees in USD.

Data Sources:

  • Staking Rewards from indexed Tezos Blockchain RPC Endpoints

  • TzKT for cycle data, baker rewards, and protocol constants


References:


📚 Learn more about XTZ Staking

📊 Calculate your XTZ Staking Rewards

⚙️ Access historic Tezos Staking Data via API

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