[Polkadot Wiki Migration] Validator Payout #42

CrackTheCode016 · 2024-09-18T22:13:35Z

This page was migrated from https://wiki.polkadot.network/docs/maintain-guides-validator-payout

…dot-docs into bd-infra-payout

dawnkelly09 · 2024-10-03T19:42:36Z

All I did was merge master into this to resolve merge conflicts but it triggered a content team review I can't cancel. Sorry about that!

nhussein11 · 2024-10-04T12:04:09Z

infrastructure/validators/rewards-payout.md

+- Producing a referenced uncle block
+
+!!!note
+    An uncle block is a Relay Chain block that is valid in every regard, but which failed to become canonical. This can happen when two or more validators are block producers in a single slot, and the block produced by one validator reaches the next block producer before the others. We call the lagging blocks uncle blocks.


Suggested change

An uncle block is a Relay Chain block that is valid in every regard, but which failed to become canonical. This can happen when two or more validators are block producers in a single slot, and the block produced by one validator reaches the next block producer before the others. We call the lagging blocks uncle blocks.

An uncle block is a Relay Chain block that is valid in every regard but has failed to become canonical. This can happen when two or more validators are block producers in a single slot, and the block produced by one validator reaches the next block producer before the others. The lagging blocks are called uncle blocks.

infrastructure/validators/rewards-payout.md

nhussein11 · 2024-10-04T12:10:40Z

infrastructure/validators/rewards-payout.md

+
+Era points create a probabilistic component for staking rewards.
+
+If the mean of staking rewards is the average rewards per era, then the variance is the variability from the average staking rewards. The exact DOT value of each era point is not known in advance since it depends on the total number of points earned by all validators in a given era. This is designed this way so that the total payout per era depends on Polkadot's [inflation model](), and not on the number of payable actions (for example, authoring a new block) executed. For more information, read this StackExchange post about [reward calculations](https://substrate.stackexchange.com/questions/5353/how-are-rewards-in-dot-calculated-from-the-era-points-earned-by-validators-in-po).


Suggested change

If the mean of staking rewards is the average rewards per era, then the variance is the variability from the average staking rewards. The exact DOT value of each era point is not known in advance since it depends on the total number of points earned by all validators in a given era. This is designed this way so that the total payout per era depends on Polkadot's [inflation model](), and not on the number of payable actions (for example, authoring a new block) executed. For more information, read this StackExchange post about [reward calculations](https://substrate.stackexchange.com/questions/5353/how-are-rewards-in-dot-calculated-from-the-era-points-earned-by-validators-in-po).

If the mean of staking rewards is the average rewards per era, then the variance is the variability from the average staking rewards. The exact DOT value of each era point is not known in advance since it depends on the total number of points earned by all validators in a given era. This is designed this way so that the total payout per era depends on Polkadot's [inflation model](), and not on the number of payable actions (for example, authoring a new block) executed. For more information, read the [How are rewards in dot calculated from the era point](https://substrate.stackexchange.com/questions/5353/how-are-rewards-in-dot-calculated-from-the-era-points-earned-by-validators-in-po) post.

nhussein11 · 2024-10-04T12:25:31Z

infrastructure/validators/rewards-payout.md

+
+If the mean of staking rewards is the average rewards per era, then the variance is the variability from the average staking rewards. The exact DOT value of each era point is not known in advance since it depends on the total number of points earned by all validators in a given era. This is designed this way so that the total payout per era depends on Polkadot's [inflation model](), and not on the number of payable actions (for example, authoring a new block) executed. For more information, read this StackExchange post about [reward calculations](https://substrate.stackexchange.com/questions/5353/how-are-rewards-in-dot-calculated-from-the-era-points-earned-by-validators-in-po).
+
+With parachains now on Polkadot, a large percentage of era points will come from parachain validation, as a subset of validators are selected to para-validate for all parachains each epoch, and those para-validators can generate more era points as a result. Para-validators are rewarded 20 era points each for each parachain block that they validate.


Probably this was written when parachains went live. I'd paraphrase this a bit since they have been a reality for some time now

nhussein11 · 2024-10-04T12:29:36Z

infrastructure/validators/rewards-payout.md

+    Then, `v` &#8593; if `w` &#8593;, as this reduces `p` : `w`, with respect to `e`.
+
+    Increased `v` is expected, and initially keeping `p` &#8595; using the same para-validator set
+    for all parachains ensures [availability]() and [voting](../learn/learn-polkadot-opengov.md). In addition, despite `v` &#8593; on an `e` to `e` basis, over time, the amount of rewards each validator receives will equal out based on the continuous selection of para-validators.


IMO it would be better for readability to also explicitly write down these relationships, not just use arrows and icons. However, I do like the arrows, so I'd keep both since I believe they are easier to remember

nhussein11 · 2024-10-04T12:37:29Z

infrastructure/validators/rewards-payout.md

+```
+Validator Set Size (v): 4
+Validator 1 Stake (v1): 18 DOT <- Your validator
+Validator 2 Stake (v2):  9 DOT
+Validator 3 Stake (v3):  8 DOT
+Validator 4 Stake (v4):  7 DOT
+Payout (p): 8 DOT
+
+Your payout = (p / v) * 1 = (8 / 4) * 1 = 2
+```
+
+Running two validators, and splitting the stake equally, would result in the original validator `v4`
+to be kicked out of the validator set, as only the top `v` validators (as measured by stake) are
+selected to be in the validator set. More important, it would also double the reward that you get
+from each era.
+
+```
+Validator Set Size (v): 4
+Validator 1 Stake (v1): 9 DOT <- Your first validator
+Validator 2 Stake (v2): 9 DOT <- Your second validator
+Validator 3 Stake (v3): 9 DOT
+Validator 4 Stake (v4): 8 DOT
+Payout (p): 8 DOT
+
+Your payout = (p / v) * 2 = (8 / 4) * 2 = 4
+```


I think it would be helpful to add a distinguishing factor for the second set of validators (v1, v2, v3, v4). I was thinking of using something like:

v1'

v2'

v3'

v4'

This way, users can better understand the changes from the original v1 to the new v1' and how they relate to v4 and v4'.

nhussein11 · 2024-10-04T12:48:21Z

infrastructure/validators/rewards-payout.md

+    and 100% commission means that the validator operator gets all rewards and gives none to its
+    nominators.
+
+In the following examples, we can see the results of several different validator payment schemes and


As you are using DOT in these examples, I'd add a small note or sentence that explains that these example are thought for polkadot relay chain that uses DOT as native token

nhussein11 · 2024-10-04T12:49:41Z

infrastructure/validators/rewards-payout.md

+having a low or non-existent validator payment may attract more stake from nominators, since they
+know they will receive a larger reward.
+
+```


I'm still unsure if this would look nicer in a table format...

fix

11a2967

CrackTheCode016 added In Progress Infrastructure labels Sep 18, 2024

Merge branch 'master' of https://github.com/polkadot-developers/polka…

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…dot-docs into bd-infra-payout

dawnkelly09 requested a review from a team as a code owner October 3, 2024 19:41

format edits WIP

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nhussein11 reviewed Oct 4, 2024

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[Polkadot Wiki Migration] Validator Payout #42

[Polkadot Wiki Migration] Validator Payout #42

CrackTheCode016 commented Sep 18, 2024

dawnkelly09 commented Oct 3, 2024

nhussein11 Oct 4, 2024

nhussein11 Oct 4, 2024

nhussein11 Oct 4, 2024

nhussein11 Oct 4, 2024

nhussein11 Oct 4, 2024

nhussein11 Oct 4, 2024

nhussein11 Oct 4, 2024

	An uncle block is a Relay Chain block that is valid in every regard, but which failed to become canonical. This can happen when two or more validators are block producers in a single slot, and the block produced by one validator reaches the next block producer before the others. We call the lagging blocks uncle blocks.
	An uncle block is a Relay Chain block that is valid in every regard but has failed to become canonical. This can happen when two or more validators are block producers in a single slot, and the block produced by one validator reaches the next block producer before the others. The lagging blocks are called uncle blocks.


		Era points create a probabilistic component for staking rewards.

		If the mean of staking rewards is the average rewards per era, then the variance is the variability from the average staking rewards. The exact DOT value of each era point is not known in advance since it depends on the total number of points earned by all validators in a given era. This is designed this way so that the total payout per era depends on Polkadot's [inflation model](), and not on the number of payable actions (for example, authoring a new block) executed. For more information, read this StackExchange post about [reward calculations](https://substrate.stackexchange.com/questions/5353/how-are-rewards-in-dot-calculated-from-the-era-points-earned-by-validators-in-po).


		If the mean of staking rewards is the average rewards per era, then the variance is the variability from the average staking rewards. The exact DOT value of each era point is not known in advance since it depends on the total number of points earned by all validators in a given era. This is designed this way so that the total payout per era depends on Polkadot's [inflation model](), and not on the number of payable actions (for example, authoring a new block) executed. For more information, read this StackExchange post about [reward calculations](https://substrate.stackexchange.com/questions/5353/how-are-rewards-in-dot-calculated-from-the-era-points-earned-by-validators-in-po).

		With parachains now on Polkadot, a large percentage of era points will come from parachain validation, as a subset of validators are selected to para-validate for all parachains each epoch, and those para-validators can generate more era points as a result. Para-validators are rewarded 20 era points each for each parachain block that they validate.

[Polkadot Wiki Migration] Validator Payout #42

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