Rewards
Rewards are the returns for participants of the Byzantine Finance protocol.
They are allocated and distributed by the Strategy Module's smart contract as described below.
Proof-of-stake rewards - native restaking
Both consensus and execution rewards are completely returned to node operators and split equally amongst them.
Price of validation credits (VCs)
Validation credits are the reason why 100% of consensus & execution rewards are distributed to node operators.
VCs are purchase by node operators at the start of their term to gain the right of borrowing ETH and joining a validator. The ETH paid for these VCs is held by an escrow contract and gradually returned to the strategy vaults the node operators worked for. This regularises staker cashflow while protecting against missed rewards.
Restaking rewards
Restaking rewards are the fees collected from different AVSs on EigenLayer in return for the AVS operator's work for that AVS.
Percentage returned to node operators in DVT cluster and split equally among them.
Percentage returned to AVS operator.
Remainder returned to stakers.
Consensus rewards (PoS)
For attesting to a block and proposing new ones, validators receive consensus rewards. These rewards are available to be withdrawn as soon as a node operator exits their DVT cluster.
100% returned to node operators in the DVT cluster and split equally amongst them
Execution rewards (PoS)
Special rewards for the MEV strategy of block-proposing validators. These rewards are immediately available - they are routed to the strategy module smart contract and distributed to node operators.
100% returned to node operators in the DVT cluster and split equally amongst them
Monetary reward types & distribution
Consensus rewards (PoS)
For attesting to a block and proposing new ones, validators receive consensus rewards. These rewards are available to be withdrawn as soon as a node operator exits their DVT cluster.
100% returned to node operators in the DVT cluster and split equally amongst them
Execution rewards (PoS)
Special rewards for the MEV strategy of block-proposing validators. These rewards are immediately available - they are routed to the strategy module smart contract and distributed to node operators.
100% returned to node operators in the DVT cluster and split equally amongst them
Price of validation credits (VCs)
Validation credits are the reason why 100% of consensus & execution rewards are distributed to node operators. VCs are purchase by node operators at the start of their term to gain the right of borrowing ETH and joining a validator. The ETH paid for these VCs is the gradually returned to stakers.
Restaking rewards
Restaking rewards are the fees collected from different AVSs on EigenLayer in return for the AVS operator's work for that AVS.
Percentage returned to node operators in DVT cluster and split equally among them
Percentage returned to AVS operator
Remainder returned to stakers.
Note: EigenLayer is still heavily in development. The distribution of restaking rewards is subject to change.
EigenLayer points distribution
Since all the ETH on the Byzantine Finance protocol are natively restaked, all our stakers earn EigenLayer points. 100% of these points are passed on to stakers!
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