Effective Yield Estimation

The data provided here is an attempt to estimate the impact of the current yield throttling design given the stake distribution observed on the Solana mainnet-beta network. The stake distribution data is accurate as of 2021-01-07 07:00:02 UTC however adjustments have been made to represent what is more realistic when throttling is enabled (see below).


A description of the proposed yield throttling is outlined and beind discussed here.


Model assumptions and parameters


Below are adjustments made to the raw data to better simulate stake distribution at time of inflation as well as some throttle parameters. All of the parameters and adjustments below are estimations and numerical placeholders only. Exact delegation, throttle and inflation parameters that will be implemented on the actual network are TBD and will be announced prior to implementation

  • Foundation delegation reduced from 550,000 SOL to 100,000 SOL per node (hence the 'adjusted' demarcation on the plots). Currently distributed via Stake-o-Matic
  • Throttle threshold set at 0.1% total activated stake per node (see link to discussion above for description of full throttle parameterization)
  • The yield throttle is applied to all stake above the threshold. It increases linearly until it reaches 50% at a node-stake of 1% total activated stake (10x threshold)
  • Effective Yield as seen below, is an estimation of the reduction in validator-yield (rewards) as a result of yield throttling

Note this estimator only calculates the reduction in yield from the throttling mechanism, not the yield itself. Information on inflation parameters and expected validator-level yields will be circulated in advance of enabling inflation


Applying yield throttling: