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Edgeware Mod 5C2C49BE-0B07-4C3F-8D36-B1FB2C7ACC0C Created with sketchtool. 186 Stranger 3 Oct 4 2023 9:25

Factors affecting staking rewards

  • Edgeware Validator
  • Edgeware Nominator
  • Edgeware Staking
    • Edgeware
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I am currently working on a staking platform and I am curious about the factors that affect staking rewards. I have read some articles about it, but I still have some questions. Can anyone explain to me in detail what factors affect staking rewards? How do these factors affect the rewards? Are there any best practices to optimize staking rewards? Any help would be greatly appreciated.

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undefined 5C2C49BE-0B07-4C3F-8D36-B1FB2C7ACC0C Created with sketchtool. 0 Stranger 0 Oct 4 2023 9:26

When staking, it's important to consider the following factors:

  • Commission: The lower the commission, the higher your rewards will be.
  • Nominating multiple validators can reduce the risk in case of a slashing event. It's worth noting that so far, no validator has performed any malicious activity.
  • Total stake: Validators with a low total stake (self+nominated stake) will yield more reward per EDG. However, it's important to ensure that your chosen validator has enough stake to maintain its position in the top 95 rankings by total stake.
  • Commission of private validators: If you nominate a validator with 100% commission (private validator), they will receive all your rewards and you won't receive any rewards.