Validator ROI Equation Assistance/Help Needed [SOLVED]

Secret Nodes
#1

Greetings,

I am in the process of creating a calculator for validator ROI. Unfortunately, there has been a disconnect between reality and what I believe the equation to be. The following is the equation that is being used, if you could spot the discrepancy (as the amount is being vastly overcalculated) that would be helpful.

Validator Return Equation (VRE)
Total Delegators = T
Annual ROI = R
Commission Rate = C
VRE = T * R * C

Expanded:

I = Inflation Rate
F = Foundation Tax
C = Commission Rate
T = Community Tax
R = Staking Ratio
Staking Ratio = Total Staked SCRT / Total SCRT
D = Total SCRT Delegated to Validator

Validator annual ROI SCRT = ( ( I / R ) * (1 - F - T) * C ) * D

With testing I am getting approximately 2.25x more SCRT from this equation than reality.

Any ideas where this discrepancy is from?

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#2

Hey Carter,
This is great that you guys are about to publish this.

Have you taken into account actual block production?

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#3

Dan, you mean the bonus reward for block production? The answer is no. Pretty sure that’s would have a minimal effect and be way complicated. Sandy and I had looked at it when doing his calculator.

#4

((I/R)*(1-T-F)*C)*D seems to be working for me. How do you figure you’re getting 2.25x more than reality? What is your “reality” situation?

Validator ROI = C * Annual ROI
Annual ROI = I/R* (1-T-F)
Validator ROI = C*(I/R *(1-T-F))

#5

Hmm, could be something off on our implementation. Target is 800 SCRT a month, and the tool is yielding closer to 1300 SCRT a month.

#6

Solved:

(% of locked SCRT in relation to total SCRT staked giving privilege to X number of blocks annually / total blocks to be issued annually) * (Inflation * Total Supply) * % of rewards after fees * Commission Rate -> block issuance is based off of block production approximate between 4 - 4.2 seconds, need to narrow in on what value to use for this…ultimately it will be an accurate estimate based off of testing thus far

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