How is NEAR's reward rate
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.
* Reward rates published by Coinbase Cloud are estimates based on publicly available information from third-party sources. Coinbase Cloud has not verified and does not guarantee the accuracy of this information. Reward rates on some protocols may vary based on the amount staked and/or other variables, including validator performance, so you should not rely on the accuracy of any reward rate ranges we publish, which are intended to provide an estimate. The actual rate of rewards earned may vary substantially and may change over time and Coinbase Cloud does not guarantee that you will receive any staking rewards. Staked assets may be subject to slashing penalties and risk of loss is possible, including up to the full loss of principal.
How do delegators receive rewards?
As a delegator, rewards (minus the service fee) compound automatically, meaning they get restaked. They need to be unbonded in order to be accessed.
What are the risks associated with delegating?
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.
How does Coinbase Cloud's service fee work?
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.
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