Formula for calculation of proposer reward
I was trying to validate the rewards being allocated to the validators on Cosmos when I found a weird thing. According to the documentation everywhere, there are two types of rewards that a validator gets for each block/epoch: • Validator rewards (that depend on the on-chain inflation rate) include rewards from inflation and a stake-weighted share of the tx fees. • Proposer rewards (that is basically tx) include inflation reward + stake weighted share of tx fees + 1 to 5 % bonus on the tx Fees. However, on-chain data is actually very different. • For example, if we take block any arbitrary block, say, 12763287, the inflation minted (~13.12%) is around 9.492 ATOM. Now, the proposer reward for that block is about 0.48 ATOM, and the sum of total rewards for all other validators is ~8.82 ATOM. Total supply - 315,212,795 ATOM. Summing it up, we get ~9.30 ATOM. However, the total amount minted is 9.49 ATOM (total supply * 0.1312 / blocks_per_year). Now, I am assuming that a 2% community tax is taken from 9.49 ATOM (=> community tax = 0.189 ATOM). Hence we get 9.49 - 0.189 = 9.301 ~ 9.3 ATOM that we got from total rewards. I am ignoring txFees here since they are generally…
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For 2) I simply don’t know
Regarding 1) though, community tax is indeed applied to the newly minted ATOM and not to the tx fees. So if we would make the total inflation of a new block 100%, then 2% goes to the community pool, a part to the block proposer and the rest to all the stakers on chain.