PAW Documentation

Validator Rewards

Reward Calculations

The basic formula for calculating your rewards as a Delegator on a PAW Chain through a node is:

       
  • Staked amount x APR% = x
  •    
  • x / the number of checkpoints in a year (since the reward is in APR).

Example:

       
  • If you delegate 10,000 units with a 15% APR, you will earn 1,500 units at the end of the year.        
                 
    • 10,000 x 15% = 1,500 units
    •        
       
  •    
  • Divide the 1,500 units by the 730 checkpoints per year (assuming 2 checkpoints per day for 365 days: 2 * 365 = 730).        
                 
    • 1,500/730 = 2.05 ~
    •        
       
  •    
  • This results in a reward of 2.05~ units per checkpoint.        
                 
    • 4.10 ~ reward units per day (2.05 x 2 checkpoints)
    •            
    • 28.7 ~ reward units per week (4.10 x 7 days)
    •            
    • 114.8 ~ reward units per month (4.10 x 28 days)
    •            
    • 1500 ~ reward units per year (4.10 x 365 days)
    •        
       

This means you will earn 2.05 units twice per day, every 12 hours, assuming the staked supply remains the same on the network for the entire year, which is unlikely to be exact.

At each checkpoint, the blockchain evaluates the number of units staked and recalculates the rewards. If the staked supply falls below 30% total supply staked on PAW Chain, the APR% may increase (e.g., from 15% to 16%), and if it exceeds 30%, the APR% may decrease (e.g., from 15% to 13-14%). This adjustment process happens continuously and is calculated at every checkpoint.

Different blockchains may have varying checkpoint intervals. For example, if the network has 1 checkpoint per hour, you would use 8,760 checkpoints per year (365 days * 24 hours = 8,760) instead of 730. The annual reward amount remains the same, but it is distributed in smaller, more frequent increments.