From a8161fbd848ca0be4ce805bdd0cbf944ae7dcf49 Mon Sep 17 00:00:00 2001 From: Anmol Sirola <95535448+AnmolSirola@users.noreply.github.com> Date: Thu, 13 Jul 2023 22:57:03 +0530 Subject: [PATCH 1/2] Add reward calculation section --- docs/node/rewards-penalties.md | 15 +++++++++++++-- 1 file changed, 13 insertions(+), 2 deletions(-) diff --git a/docs/node/rewards-penalties.md b/docs/node/rewards-penalties.md index 3b7667d8..798f39de 100644 --- a/docs/node/rewards-penalties.md +++ b/docs/node/rewards-penalties.md @@ -16,7 +16,18 @@ You are responsible for your node, including ensuring uptime, correct behavior, ### Current Yield - The current yield on GNO staking can be found in this [Dune Dashboard](https://dune.xyz/maxaleks/Gnosis-Beacon-Chain-\(Deposits\)). -- As of Nov 2022, GNO staking has a ~15-16% yield. +- As of Nov 2022, GNO staking has a ~15-16% yield. + +### Rewards Calculation: +- **Block Proposals**: The reward for proposing a block consists of a base reward and an additional reward proportional to the validator's index. While the base reward remains constant, the additional reward decreases as the validator's index increases, ensuring equal block proposal opportunities for all validators. + +Example: A validator with index 10 proposes a block. The base reward for proposing a block is 100, and the additional reward is 10 / 100 = 0.1. The total reward for the validator is 100 + 0.1 = 100.1. + +- **Block Attestations**: The reward for attesting to a block features a base reward that diminishes over time. Initially set at 100%, the base reward decreases by 1% for every 1000 slots, maintaining the attractiveness of block proposal rewards even as the number of validators grows. + +Example: A validator with index 100 attests to a block. The base reward for attesting to a block is 100, and the additional reward is 99%. The total reward for the validator is 100 * 0.99 = 99. + +### ### Rewards Curve @@ -87,4 +98,4 @@ In these cases, 1/32 of a validator's staked GNO is immediately burned, and the We recommend the following readings for a more in-depth understanding of validator penalties. - [Ethereum.org on Proof-of-stake Rewards and Penalties](https://ethereum.org/en/developers/docs/consensus-mechanisms/pos/rewards-and-penalties/) -- [Upgrading Ethereum on "The Incentive Layer"](https://eth2book.info/bellatrix/part2/incentives/) \ No newline at end of file +- [Upgrading Ethereum on "The Incentive Layer"](https://eth2book.info/bellatrix/part2/incentives/) From 34e86d58bd4420bce07f6f2725ed683f68f44211 Mon Sep 17 00:00:00 2001 From: Anmol Sirola <95535448+AnmolSirola@users.noreply.github.com> Date: Fri, 14 Jul 2023 11:33:54 +0530 Subject: [PATCH 2/2] Updated rewards-penalties.md --- docs/node/rewards-penalties.md | 9 ++++++++- 1 file changed, 8 insertions(+), 1 deletion(-) diff --git a/docs/node/rewards-penalties.md b/docs/node/rewards-penalties.md index 798f39de..bf5c0491 100644 --- a/docs/node/rewards-penalties.md +++ b/docs/node/rewards-penalties.md @@ -19,6 +19,7 @@ You are responsible for your node, including ensuring uptime, correct behavior, - As of Nov 2022, GNO staking has a ~15-16% yield. ### Rewards Calculation: + - **Block Proposals**: The reward for proposing a block consists of a base reward and an additional reward proportional to the validator's index. While the base reward remains constant, the additional reward decreases as the validator's index increases, ensuring equal block proposal opportunities for all validators. Example: A validator with index 10 proposes a block. The base reward for proposing a block is 100, and the additional reward is 10 / 100 = 0.1. The total reward for the validator is 100 + 0.1 = 100.1. @@ -27,7 +28,13 @@ Example: A validator with index 10 proposes a block. The base reward for proposi Example: A validator with index 100 attests to a block. The base reward for attesting to a block is 100, and the additional reward is 99%. The total reward for the validator is 100 * 0.99 = 99. -### +### Understanding Gas Consumption and Transaction Fees + +- The gas consumption for processing a transaction depends on its complexity. For instance, an ETH transfer between two accounts requires less gas than deploying a new smart contract. + +- Transaction fees are computed by multiplying the base fee with the gas price. The Ethereum network determines the base fee, which fluctuates according to block space demand. Users set the gas price, which can vary. + +For example, if the base fee is 10 gwei and the gas price is 100 gwei, then the fee for a transaction that uses 100,000 gas would be 1,000,000 gwei. ### Rewards Curve