Staking ROI (actual vs theoretical)

I noticed that my staking rewards are always around 20% less than what I would expect to receive.

Is it because the block time on mainnet (>6 seconds) is higher than the expected block time (5 seconds)?

Through a proposal, Cosmos Network adjusted the parameter “blocks_per_year” so that the reward rate align with the theoretical reward rate:

Do we expect the Secret Network to produce blocks at a faster rate than Cosmos?

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I don’t have an exact figure because I don’t have an exact number for the amount of SCRT I’m currently getting every 24 hours but I do agree that I’m under the expectation.

When comparing to the spreadsheet with updated numbers (I added up to the last address with 5 digit SCRT amount, then eyeballed the total of those last few so it shouldn’t be significant).

I get around 33.16% expected ROI, but I’m definitely not there.

The math I did was:

initial stake * 1.3316 - initial stake = rewards
rewards / 365 = daily
daily rewards * 0.98 for community fund
then previous result * 0.95 for commission percentage

Could someone please explain where I went wrong and didn’t deserve to graduate high school math?

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TL;DR The real rate of return is closer to 21% than any other calculation I have seen.

I’ve had this issue too, if I follow the method as outlined here
https://medium.com/@caw34769/secret-network-delegator-annual-roi-calculation-tutorial-25-30-a133ff31d150 it gives a higher annual ROI than what is actually possible.

If I calculate it manually:
I manually calculate the daily ROI by waiting exactly 24 hours (or any other timeframe) and checking the reward earned (direct API lookup and grabbing from online explorers) and calculating it out to a yearly return it is much lower than what is indicated anywhere. I have also done this calculation over multiple days / varying time frames with varying total staked / total supply during this time with the same result.

The rate of return is definitely in the vicinity of ~21%. It isn’t quite the 20% difference that you had though.

Are you also taking out validator fees? It’s around 24% before commission so that would seem to make sense. There is a more detailed calculator a few of us have been using. Waiting on it to be released by @the-dusky :slight_smile:

0% commission, but still ~21% or specifically 20.9%. Calculating it manually down to the second of daily 24 hour return. The only way it could pop to 24% is if I added ~0.3 SCRT to the daily total. I’ll try calculating it again with the new main net, can’t see it changing though. Even if I was off by 1 minute, it wouldn’t account for the 0.3 SCRT required to make 24%, we’ll see…

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My vue.js skills are miserable right now. I basically forgot everything :roll_eyes:

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