Maximum annual interest and rewards for nominating or validating?

  • Edgeware Validator
  • Edgeware Nominator
  • Edgeware Staking
  • Edgeware
Expert

I am working on a blockchain project and I am wondering what is the maximum annual interest and rewards that can be earned when nominating or validating? Is there a formula or calculation that can be used to determine this? Any insights or resources would be greatly appreciated. Thank you!

Answers 1

The amount of returns you receive from staking EDG as a validator depends on a few factors. These include the number of EDG staked for your validator, your proportion in that stake, and the number of validators in the set at any given time. It's important to note that the annual inflation of the EDG supply will not exceed 20%.

If you remain in the validator set the entire time and avoid slashing, you can expect to receive around 20% in rewards annually. It's worth noting that not all of these rewards come from supply inflation; some come from transaction fees, tips, and other sources.

To maximize your rewards, it's recommended to stake at least 80% of all EDGs.