The overall inflation rate on NEAR is 5% per year. It will not meaningfully change in the first few years and does not fluctuate based on staking rate. Validators can expect to receive 4.5% of inflation per year. Given the expected staking ratio is 40%, the expected rate of reward for validators is 11.25%.
Validators as a group are paid a fixed 90% of around 5% of total supply annualized with the other 10% going to Protocol Treasury). For example, in the first year Validators will receive around 45,000,000 Ⓝ. Rewards are distributed per epoch — every half a day.
Each validator receives a reward proportional to their participation. As a validator stakes, how many seats they take is determined via simple auction. After each epoch finishes, the validator will be evaluated based on how many blocks and chunks they produced versus what they were expected to produce. Validators with at least 90% online presence will receive rewards that grow linearly, with 100% of the reward given for those with a 99% or above online presence.
As a delegator, rewards (minus the service fee) compound automatically, meaning they get restaked. They need to be unbonded in order to be accessed.
Slashing is currently disabled on NEAR. However, if a validator is offline more than 10% of what’s expected, the validator is considered to be offline/unstable, won’t get any rewards, and will be removed from the coming epoch’s validation.
Coinbase Cloud charges a percentage service fee on all rewards earned by tokens delegated to our NEAR validator. The service fee is paid to Coinbase Cloud automatically by the protocol. You can withdraw your rewards from the protocol directly.
Updated 4 months ago