How Klever Validator Rewards Are Calculated

When you stake your KLV tokens with a validator, you earn daily rewards through the Klever blockchain's reward minting system. Every 4 seconds, a new block is minted, and each block generates both staking rewards and block rewards as newly minted KLV.

Staking rewards: 15 KLV are minted per block and distributed equally to all delegators based on their share of the total stake.
Block rewards: 15 KLV are minted per block and distributed among the 21 elected validators and their delegators, plus transaction fees from the network.

1. Staking Rewards

Staking rewards come from newly minted KLV, with 15 KLV minted per block. This results in a total of 324,000 KLV minted daily for staking rewards, distributed to delegators proportional to their stake.

Formula: \[ \text{Daily Staking Rewards} = \frac{\text{Staked KLV}}{\text{Network Total Stake}} \times 324,000 \, \text{KLV} \]

2. Block Rewards

Block rewards also come from newly minted KLV, with 15 KLV minted per block, plus additional rewards from transaction fees. This results in a base of 324,000 KLV minted daily for block rewards. These rewards are distributed among the active validators and their delegators based on their contribution.

Since the Klever network rotates 6 validators out and 6 new ones in every 6 hours, an effective 45 unique validators participate in block production each day.

Formula: \[ \text{Daily Block Rewards} = \left( \frac{324,000 + (4 \times \text{BandwidthFeeLastEpoch})}{45} \right) \times \frac{\text{Staked KLV}}{\max(10,000,000, \, \text{Validator Delegations})} \times \frac{\text{Reward Percent}}{100} \]

Rotation Calculation:

The rotation system ensures that all 45 validators are involved in block production each day. Here's how this is calculated:

\[ 21 \, \text{validators} \times 4 \, \text{rotations per day} = 45 \, \text{unique validators per day} \]

Explanation:

15 KLV per block: 15 KLV are minted with each block for block rewards, totaling 324,000 KLV per day.
45 active validators: Due to the network's 4 daily rotations, an effective 45 unique validators contribute to block rewards each day.
Bandwidth Fee: Daily transaction fees added to the block rewards, calculated as \(4 \times \text{BandwidthFeeLastEpoch}\).
Minimum Delegations: Validators with less than 10 million KLV delegations are treated as having 10 million KLV for reward calculations, but this adjustment is not shown in the table.

3. Annual Percentage Rate (APR) Calculation

The APR estimates your yearly returns by summing the yearly staking and block rewards and comparing them to the staked KLV.

Formula: \[ \text{APR} = \frac{\text{Staking Rewards per Year} + \text{Block Rewards per Year}}{\text{Staked KLV}} \times 100 \]

Where:

Staking Rewards per Year = Daily Staking Rewards × 365
Block Rewards per Year = Daily Block Rewards × 365

Klever Reward Calculation

How Klever Validator Rewards Are Calculated

1. Staking Rewards

2. Block Rewards

3. Annual Percentage Rate (APR) Calculation