Symbiosis PoS Staking Rewards

Symbiosis Proof of Stake (PoS) Staking ensures the security and stability of the Symbiosis protocol by enabling participants – Validators and Delegators – to stake tokens in support of the Symbiosis Relayers Network. In return, Validators and Delegators receive rewards based on protocol-defined rules and the actual performance of the relayer nodes they support.

This document details how rewards are calculated and distributed.

Disclaimer: The reward calculation and distribution mechanisms described in this document are applicable to all Validators and Delegators. These terms are effective as of the date of publication and may be updated at the discretion of the Symbiosis protocol.

Roles And Participants

  • Validator: A Validator is responsible for registering a relayer node and staking SIS tokens as collateral in the Symbiosis PoS Staking Contracts. Each Validator supports one relayer node.

  • Delegator: A Delegator supports Validators by delegating SIS tokens to their stake pool via the PoS Staking Contracts. A Delegator can support multiple Validators.

  • Validator Group: A Validator Group consists of a Validator and the Delegators supporting the same relayer node.

Reward Summary

Who receives rewards? Validator Groups whose relayer nodes participated in signing the epoch change.

How often are rewards distributed? Rewards are calculated and distributed at the time of an epoch change – but only if the epoch was completed by the Symbiosis Relayers Network.

>> More information about the Epoch Change Procedure can be found here: Epoch Change Process

What is the epoch duration? The default epoch duration is 24 hours. The actual epoch duration may differ from the default epoch duration.

In what form are rewards distributed? All PoS Staking rewards are distributed in SIS tokens.

Where is staking and reward data stored? All staking and reward data is stored on-chain in the Symbiosis PoS Staking Contracts deployed on Arbitrum.

How to participate in the Symbiosis PoS Staking and receive rewards? Use the Symbiosis PoS Staking App, which provides a user-friendly interface to interact with the Symbiosis PoS Staking Contracts. This is the recommended method for Validators and Delegators.

Reward Calculation Details

Rewards are determined based on two values stored in the Symbiosis PoS Staking Contracts:

  • Default epoch duration

  • Reward pool per default epoch

Actual Reward Pool per Real Epoch

In practice, the actual duration of an epoch may differ from the default. In such cases, the reward pool is adjusted proportionally.

For example, if:

  • Default epoch duration = 24 hours

  • Reward pool = X SIS tokens

Then:

  • If the real epoch lasts 24 hours, the reward pool = X

  • If it lasts 12 hours, the reward pool = X / 2

  • If it lasts 25 hours, the reward pool = X + X / 24

Epoch start and end times are determined by the timestamps of the corresponding blocks recorded on-chain.

Reward Pool Distribution

The actual reward pool is distributed only among Validator Groups whose relayer nodes participated in signing the epoch change.

Distribution is proportional to the group stake size, where the group size is the validator stake plus the delegator stakes.

Reward Distribution within Group

Once the Validator Group receives its share, rewards are split within the group as follows:

  • The Validator receives 7.5% of the group's total reward;

  • The remaining 92.5% is then distributed proportionally between the Validator and Delegators based on their stake share.

Example:

Validator Group total stake: 200,000 SIS, where

  • Validator stake: 170,000 SIS (85%)

  • Delegators stake: 30,000 SIS (15%)

Reward for the epoch earned by this validator group: 1,000 SIS

  • Validator receives:

    • 7.5% base reward: 1,000 × 0.075 = 75 SIS

    • Plus 85% of the remaining 925 SIS: (1,000 * 0.925) * 0.85 = 786.25 SIS

    • Validator Total: 861.25 SIS

  • Delegators receive: (1,000 * 0.925) * 0.15 = 138.75 SIS

Reward Accumulation

  • Validator rewards are automatically added to their stake and begin compounding – thus Validators receive APY.

  • Delegator rewards must be claimed manually and do not compound automatically – hence Delegators receive APR.

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