Validator APR%

The validator APR calculation is conceptually the same as the Delegator APR% in terms of calculating and using stake-weighted rewards except that the former is done at every checkpoint. Noise is also filtered out by only taking into account validators who have been active for the whole time window. Active here means being assigned checkpoint signing duties.

APR% = (validator’s rewards per stake in MATIC * 365 days * 24 hours * 60 minutes * 60 seconds) / (time period in seconds)

Gross APR% for a validator takes into consideration all the rewards they receive from checkpoint signing, checkpoint proposals, and block proposals on Bor. Meanwhile, net APR% only considers their rewards from commissions, their share of checkpoint signing rewards based on their self-staked MATIC, checkpoint proposals, and Bor block proposals.

Both gross and net APR% uses the validator’s total stake (self-staked and delegated stake) as basis for returns as opposed to just the amount they staked themselves. This is because despite the delegated stake not being their own capital, their whole stake determines how much duties they receive in terms of checkpoint proposals and Bor block proposals. Not only that, their checkpoint signing rewards are directly affected by their share of stake in the network. In short, their total stake directly affects their total rewards so it would only be right to reflect this in the returns calculation.