Math formulas for staking rewards

General
1

I can find simple statements such as the rewards depend on the age, the lock-up period, the amount of ICP in a neuron, voting activity, …
But I want to do the math. Can anyone point me to the precise formulas after which the rewards for active neurons are calculated?

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2

This article should help:

https://medium.com/dfinity/understanding-the-internet-computers-network-nervous-system-neurons-and-icp-utility-tokens-730dab65cae8

If you’re looking or a user friendly interface check this:

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3

Thanks! Very helpful!

5

Very useful - thanks!

The tool also seems to indicate something maybe a little subtle about the staking rewards, if I’m not mistaken: is it correct that the rewards dynamically adjust as one’s dissolve delay declines? I.e., if all else were held equal for a given period, as an 8-year dissolve delay falls to 1-year, voting power would fall through that period as well (because the dissolve delay from the current day is falling)?

6

Voting rewards would fall through that period (because the dissolve delay from the current day is falling), that’s correct.

7

Makes sense - thank you!

8

Quick follow up - what could account for declining absolute returns in the case where one is staking for 20 years with an 8-year dissolve delay, at any time 5+ years from now (such that total NNS inflation has stabilized at 5% per year)?

For example, as a test, set:

  • stake size: 100 ICP
  • staking period: 20 years
  • dissolve delay: 8 years
  • advanced defaults: unchanged

Between years 5 & 6, ICP growth is greater than 10. But between years 10 & 11, ICP growth is less than 10.

I wonder what I might be missing?

9

There are other factors at play, for example there’s an age bonus that tops out at 4 years. Also, the advanced settings control assumptions for the other neurons on the network, and their dissolve state affects the percentage of rewards that are awarded to them, since they’re split between all neurons this would afffect your rewards too.

10

Are the reward payouts continuous or do they follow in steps?
Like daily, weekly, or monthly payouts?

This question is also linked to this question: What is the minimal maturity threshold in order to spawn a new neuron? - #2 by wpb - What is the minimal maturity threshold to spawn a new neuron?

11

The maturity (reward) is calculated and added to your neuron daily.

12

There’s a new article here from @Fulco with some nice details on all this: How you can earn ICP through the Network Nervous System - All Things Internet Computer

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