Understanding validator rewards distribution to reward managers and stakers
EpochReward
) is distributed among all participating validators:
Where EpochReward
represents the total gMITO reward pool available for distribution to all validators during that specific epoch period.
This ValidatorReward
represents the total reward allocated to the validator for the epoch, proportional to their actual contributions to network security and block production. However, this total amount is not given entirely to the validator operator. Instead, it gets distributed between two recipients:
TWAB_s
= Time-weighted average balance of staker s during the epochΣ(TWAB_i)
= Sum of all stakers’ TWABs for that validator during the epoch(1 - CommissionRate)
= The portion remaining after commission is deducted