Promotion Rate: We have a updated our goal payment rate of return to 5.51% annual percentage rate, assuming optimal network conditions**. This matches the Tezos Docs Inflation calculations.
Approximate Example: Delegated Tez of 100,000 could earn an average of 5,510 Tez per year during this promotional time period if Tez are left in your CD account to take advantage of instant compounding interest.
Approximate Example: Delegated Tez of 100,000 could earn an average of 5,510 Tez per year during this promotional time period if Tez are left in your CD account to take advantage of instant compounding interest.
**Calculation provided by Tezos Foundation**
Tezos transaction Fee Policy: We bundle together ALL earned Tezzies when we factor in the payment rewards that we offer. This includes Baking Rewards, Endorsement Rewards, Denunciations, and Transaction Fees.
Currently, we do not expect transaction fees to be a meaningful source of income. Since the beginning of the Tezos blockchain, as of July 7th, a grand total of only 25.9 XTZ have been generated from fees for the WHOLE Tezos ecosystem. That would be like every Tezos owner getting .000000034 Tezzies as a fee split. This is because transactions currently work just fine with zero fee because baking and endorsement rewards dominate node incentives. If transaction fees start to become meaningful, we will certainly consider incorporating larger fee sharing into our payment structure.
Currently, we do not expect transaction fees to be a meaningful source of income. Since the beginning of the Tezos blockchain, as of July 7th, a grand total of only 25.9 XTZ have been generated from fees for the WHOLE Tezos ecosystem. That would be like every Tezos owner getting .000000034 Tezzies as a fee split. This is because transactions currently work just fine with zero fee because baking and endorsement rewards dominate node incentives. If transaction fees start to become meaningful, we will certainly consider incorporating larger fee sharing into our payment structure.
*This promotional rate will be reevaluated on an ongoing basis depending on baking results and capacity of delegation bonds.
This payment goal may or may not be achieved due to unforeseen variables, but this goal is what we strive for. 5.51% assumes an average of 60 second block time and all blocks endorsed at top priority. If, for example, the average block time ends up being 66 seconds, this would cut the year 1 inflation down from 5.51% to 5.01%, then further cut down due to lower endorsement rewards to perhaps 4.8%. Delay between block times is out of our control and we must adjust our payout goal according to the actual network performance, not the hypothetical max. 5.51% is the full year compounded rate. The daily rate is slightly lower because if you leave your earned Tez in your CryptoDelegate account you will earn daily compounded interest that will result in a 5.51% rate for the year.
By using this "fixed rewards goal" payment method, CryptoDelegate is able to dramatically increase your earning stability and predictability. This method of calculation makes our client's rate of return much more stable since it relies much less on daily baking fluctuations. Our current non-promotional goal rate is set at "90% of Actual Total Blockchain Inflation" which currently is estimated at 9/10 * 5.51% = ~5%.
Please Note: We have a limited supply of bonds therefor we also have a limited number of Tezos we can accept for delegation. Once we get to the point where the amount of delegated Tez exceeds our ability to host bonds, we can no longer accept new customers. You may not earn anything if you have delegated to us too late and our bond is insufficient to cover your delegation. You will then be placed into a waitlist until either our bond increases or someone else leaves our delegation service. Fixed payments can not be guaranteed. Actual baking results will vary and CryptoDelegate can not pay out more than it bakes. Year 2 may be different since the Max Global Tezos Inflation Rate will drop to approximately 5.22% and then 4.96% in year 3. Each cycle drops the non dilutionary inflation by about -.00135%. For example, it takes about 7 cycles for the CryptoDelegate pay rate to drop .1%.
Year 1 = (763m + 42m) / 763m - 1 = 5.51%
Year 2 = ((763m + 42m + 42m) / ( 763m + 42m)) - 1 = 5.22%
Year n = ((763m + (42m * n) / (763m + (42m * n-1) = Inflation Rate
**Optimal Network Conditions: APR is calculated based on block and cycle count, not clock time. Each blockchain cycle is 4,096 blocks and each blockchain year is 525,960 blocks. (60 * 24 * 365.25) When the Tezos blockchain reaches its target of one block per 60 seconds then a Tezos Year equals a Calendar Year. If average blocktimes increase beyond the 60 second target then a Tezos Year ends up taking longer time than a Calendar Year and therefor will impact the APR calculation. Our rate is quoted as a Tezos Blockchain APR which takes 525,960 blocks to complete one "year" regardless of the amount of time it takes for those blocks to actually be baked. This equates to approximately .0429% per cycle.
This payment goal may or may not be achieved due to unforeseen variables, but this goal is what we strive for. 5.51% assumes an average of 60 second block time and all blocks endorsed at top priority. If, for example, the average block time ends up being 66 seconds, this would cut the year 1 inflation down from 5.51% to 5.01%, then further cut down due to lower endorsement rewards to perhaps 4.8%. Delay between block times is out of our control and we must adjust our payout goal according to the actual network performance, not the hypothetical max. 5.51% is the full year compounded rate. The daily rate is slightly lower because if you leave your earned Tez in your CryptoDelegate account you will earn daily compounded interest that will result in a 5.51% rate for the year.
By using this "fixed rewards goal" payment method, CryptoDelegate is able to dramatically increase your earning stability and predictability. This method of calculation makes our client's rate of return much more stable since it relies much less on daily baking fluctuations. Our current non-promotional goal rate is set at "90% of Actual Total Blockchain Inflation" which currently is estimated at 9/10 * 5.51% = ~5%.
Please Note: We have a limited supply of bonds therefor we also have a limited number of Tezos we can accept for delegation. Once we get to the point where the amount of delegated Tez exceeds our ability to host bonds, we can no longer accept new customers. You may not earn anything if you have delegated to us too late and our bond is insufficient to cover your delegation. You will then be placed into a waitlist until either our bond increases or someone else leaves our delegation service. Fixed payments can not be guaranteed. Actual baking results will vary and CryptoDelegate can not pay out more than it bakes. Year 2 may be different since the Max Global Tezos Inflation Rate will drop to approximately 5.22% and then 4.96% in year 3. Each cycle drops the non dilutionary inflation by about -.00135%. For example, it takes about 7 cycles for the CryptoDelegate pay rate to drop .1%.
Year 1 = (763m + 42m) / 763m - 1 = 5.51%
Year 2 = ((763m + 42m + 42m) / ( 763m + 42m)) - 1 = 5.22%
Year n = ((763m + (42m * n) / (763m + (42m * n-1) = Inflation Rate
**Optimal Network Conditions: APR is calculated based on block and cycle count, not clock time. Each blockchain cycle is 4,096 blocks and each blockchain year is 525,960 blocks. (60 * 24 * 365.25) When the Tezos blockchain reaches its target of one block per 60 seconds then a Tezos Year equals a Calendar Year. If average blocktimes increase beyond the 60 second target then a Tezos Year ends up taking longer time than a Calendar Year and therefor will impact the APR calculation. Our rate is quoted as a Tezos Blockchain APR which takes 525,960 blocks to complete one "year" regardless of the amount of time it takes for those blocks to actually be baked. This equates to approximately .0429% per cycle.