Rewards

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Validator Rewards

Rewards on Avalanche are very straightforward as it is only based on a validator’s uptime as observed by its peers. There are no other reward mechanisms on the Avalanche Primary Network, mostly due to the fact that all transaction fees are burned.

A validator is considered “up” if it responds to queries promptly (e.g. preference sampling and block proposals). Every validator on Avalanche keeps track of the uptime of other validators, with each validator being weighted by its stake. The more stake a validator has, the more influence they have when validators vote on whether a validator should receive a staking reward.

The validator is then rewarded if its uptime is above the uptime-requirement threshold, which is currently set to 80%. These rewards are denominated in AVAX.

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Reward Types

There are different types of rewards that a validator receives based on its uptime performance:

• VALIDATOR: rewards paid to the validator for their own committed stake

• DELEGATOR: rewards paid to the delegator for their committed stake.

• VALIDATOR_FEE: rewards paid to the validator as its cut/commission from the delegators’ rewards (depends on the commission rate set by the validator)

These rewards are distributed at different periods depending on the type. Delegator rewards are distributed at the end of the delegation period set by the delegator. Validator and validator fee rewards are distributed when a validator completes its set validation period (i.e. at the end).

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Get Validator Rewards metrics

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Get Network Rewards metrics