⭐ Validator APY
The APY calculations consist of two core steps:
1. Gathering of the Pending Emission data
Every 360 blocks (~72 minutes), we gather following data for all validators:
- - current total stake
- - emission generated in the last 360 blocks
To calculate the emission for each validator, we use the following equation:
n=current blockPHE=PendingHotkeyEmissionemission=(PHEn−PHEn−360)−validator take rate n=current blockPHE=PendingHotkeyEmissionemission=(PHEn−PHEn−360)−validator take rate If in the last 360 blocks there was an emission drain event, we calculate the current emission as follows:
emission=(PHEdrain block−1−PHEn−360+PHEn)−validator take rate emission=(PHEdrain block−1−PHEn−360+PHEn)−validator take rate 2. APY calculation
The APY for the selected time period (1h, 24h, 7d, 30d) is calculated using all the emission data gathered in a given time period and the exact formula for the calculation is as follows:
annual compounding periods=365 days=365total period yield=i=data point∑period data pointsemissioni/stakeidaily yield=total period yield/days in a periodStaking APY=[(1+daily yield)annual compounding periods]−1 annual compounding periods=ACP=365days=365total period yield=∑i=data pointperiod data pointsemissioni/stakeidaily yield=total period yield/days in a periodStaking APY=[(1+daily yield)ACP]−1 Additionally, the APY is calculated only if the validator has a minimum of 4k TAO staked and has been active for 80% or more of the selected time period.
For a practical implementation of these formulas, you can explore our open-source APY calculator.
⭐ Wallet staking yield
The wallet yield feature showcases how much Tao a given wallet would earn in a selected period if the validator APY stayed the same throughout the period.
This is calculated by the following formula:
yield=wallet stake∗[[(Staking APY+1)selected period length in hours/(365 days∗24 hours)]−1] yield=wallet stake∗[[(Staking APY+1)selected period length in hours/(365∗24)]−1] 
