An Introduction to SXP Rewards (Staking)¶
Solar is a sovereign blockchain with a native cryptoasset called SXP. It is based on the Delegated-Proof-of-Stake (DPoS) consensus mechanism and has 53 active block producers who secure the network. In this article, we will discuss how block rewards work within the Solar blockchain and how you can earn a portion of the rewards by becoming an active block producer or voting with your SXP coins.
SXP Staking is unique in that user funds are not required to be sent or locked.
When a user casts a vote, their votes are assigned to the network block producer of their choice.
A user’s votes adjusts automatically as funds are sent and received, and there is no need to re-vote or un-stake.
To change a vote, a user simply casts a new vote transaction.
For more information about voting, please visit: How to Vote for Block Producers in the Desktop Wallet
The cost of a vote covers the transaction itself.
There is no requirement to send or lock additional funds in order to participate in consensus.
This transaction fee is awarded to the block producer who adds the transaction to a given block.
For more information about fees, please visit: Transaction Fees
Solar is a sovereign blockchain that is validated by 53 active block producers.
Each block producer will submit one (1) block per round.
A round consists of 53 blocks. Each block on the Solar Network has a block time of 8 seconds.
A block producer, when active and submitting a particular block, earns a reward of 10% from the total transaction fees of that block, in addition to a dynamic, rank-based block reward.
Block Rewards are inflationary coins, meaning the total SXP supply is increased by between 6.75 and 13.25 SXP every block. This serves as a form of consistent inflation that reduces over time due to the non-fluctuating rate of rewards.
On Solar, 10% of the block reward is donated to the development fund and the Solar Blockchain Foundation while 90% goes to the block producer.
Note: There are no "halvenings" of block rewards on Solar.
Reward sharing on Solar¶
As previously stated, block rewards and transaction fees are awarded to the active block producers responsible for reporting a given block. We call this combination of the block reward and 10% of any fees the total reward. On Solar, many of these block producers choose to take a small commission from the total reward and share the remaining after commission reward (ACR) with their voters.
This form of reward sharing is completely optional and not all block producers will share their rewards
Reward sharing can vary wildly with block producers taking commissions of anywhere from 0-100% of the total rewards.
You can also view all registered block producers using the public REST API or a block explorer