How XRD staking emissions rewards and validator fees are calculated - for validators

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How XRD staking emissions rewards and validator fees are calculated - for validators

XRD Staking Emissions Rewards

A validator staking to their own node will receive rewards in exactly the same way as a token holder (assuming, as with any other node, that your node is included in the active “top 100” validator nodes).

Validator Fee

If you are a participating “top 100” validator node-runner, you may specify a validator fee that provides you, as the owner, with a portion of emissions. Your emissions will then be proportional to that fee % and, importantly, the relative amount of stake delegated to the node, both by yourself and others.

Note: This means that your best bet as a validator node-runner is to keep your fee % competitively low but seek to draw as much stake into the network and have it delegated to your node as possible. Validator node-runners are Radix’s best advocates for everyone participating in XRD staking!

You may calculate your validator fee emissions as:

E x V x F x ( 100 - P )

E = This epoch’s total emissions XRD (fixed)

V = Your validator node’s % of total delegated stake (for this epoch)

P = Penalty % for your node (for this epoch)

F = Fee % for your node (for this epoch)

So let’s say you have drawn 1% of the total delegated stake to your node. You have set your validator fee to 2%. Your node has 100% participation in consensus (of course!). Then your share of the rewards for the epoch will be:

E x 0.01 x 0.02 x ( 100% ) = 0.0002 of total E

Over the course of a year of about 300,000,000 XRD emitted, this means you would receive 60,000 XRD – a good incentive to run a high-quality node for a year!

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