MultiversX
Last updated
Last updated
| Protocol time | Human readable time | |
|---|---|---|
Any stake above a validator’s self-stake (2,500 EGLD) is called top-up staking. Reward calculation method is different for top-up staking and self-staking. If overall top-up staking amount is roughly more than 60% of self-stake amount, self-staking will have a slightly higher reward rate and vice-versa.
Rating system. Validators are rated based on their network performance.
Rating determines the probability that a validator gets selected to be part of the consensus group. Validators part of the consensus group propose blocks, submit consensus votes and earn rewards.
Rating will increase or decrease depending on successful or unsuccessful block proposals and consensus votes. Rating increase or decrease amounts are compounded when consecutive successful or unsuccessful actions are made. Rating changes happen after every epoch.
Rating can vary from 0 to 100. A rating score below 10 will forcefully exit and jail a validator from the following epoch.
New validators are assigned a rating of 50.
Rewards come from newly issued tokens and transaction fees.
Inflation rate applied to total token supply. The protocol follows an inflation schedule shown in the following table. 10% of newly issued tokens are sent to the protocol treasury. Please read the next bullets to understand how the protocol determines the number of new tokens to issue.
Transaction fees. 10% of transaction fees go directly to block proposing validators as the blocks are proposed. 9% of transaction fees are sent to the protocol treasury. The remaining transaction fees are added to the reward pool to be distributed to all stakers at the end of the epoch.
Transaction fees count towards meeting the protocol’s inflation schedule. The protocol issues new tokens to make up for the gap between transaction fees and the inflation schedule. For example, let’s assume the protocol has 10MM EGLD total supply in year 1 and 300,000 EGLD in transaction fees (after deducting out transaction fees going to block proposers and protocol treasury). According to the inflation schedule, stakers will receive 1,084,513 EGLD tokens as rewards. Since stakers received 300,000 EGLD from transaction fees, the protocol will issue 784,513 EGLD to make up for the difference. If the protocol has 2,000,000 EGLD in transaction fees, then the protocol will not issue any new tokens. Also, the reward rate will be higher than what the reward rate is following the protocol’s inflation schedule.
Factors that impact realized rewards.
Block proposer. A validator selected to propose blocks earn 10% of transaction fees.
Commissions.
Penalty. A validator that has a rating below 10 will be forcefully exited from the active validator set and jailed. A jailed validator and its delegators do not receive any staking rewards until the jailed validator unjails itself and becomes part of the active validator set again.
MultiversX documentation: https://docs.multiversx.com/
MultiversX economics paper: https://files.multiversx.com/multiversx-economics-paper.pdf
| Year | Inflation rate |
|---|---|
Minimum stake amount
✅
1 EGLD
Partial stake changes
❌
Partial reward withdrawal
❌
Compounding
❌
Penalty
⚠️
Low rating
Slashing
❌
1
0.10845130
2
0.09703538
3
0.08561945
4
0.07420352
5
0.06278760
6
0.05137167
7
0.03995574
8
0.02853982
9
0.01712389
10
0.00570796
11
0.0
Total validator cap
✅
3,200
Validator requirements
✅
2,500 EGLD
Protocol time 1
Block
6 seconds
Protocol time 2
Epoch
24 hours
First reward delay
1 epoch
24 hours
Reward frequency
Every epoch
24 hours
Unbonding period
144,000 blocks
10 days