Explaining Block Rewards in Solana
What are rewards in Solana? How does the reward system work within the Solana Ecosystem?
Rewards in Solana
In this article, we will be diving in to the different stakeholders involved with rewards & fees on Solana.
To maintain the Solana network, rewards are given out to the different stakeholders in the Solana network.
One of the most important stakeholders are Solana’s validators, validators help secure the network by validating blocks and transactions. In return for securing the network, validators are rewarded.
Block Rewards
Block rewards as the term infers, are rewards given to validators who validate the blocks in Solana.
The charts show the daily rewards given to validators, which has been on an increasing trend over the last 4 months, reaching an all time high of 670 SOL on Jan 30, 2022.
Block rewards are paid every time a validator validates the block. To track the biggest validators, check out the validator breakdown here: https://solana.fm/dashboards/validators
The higher the growth of block rewards given out, the higher the activity & volume of transactions are being done on Solana
Rent Fees
Solana works in accounts and data is stored in accounts.
At SolanaFM, we like to view accounts as files where rent is paid for storing data on-chain. A calculator has been implemented by Solana Labs to let developers know how much SOL is required to store data on the respective accounts.
Currently, the rent fees is at an average of 2 SOL per day for the whole network. To find out more about rent fees, check out https://docs.solana.com/implemented-proposals/rent.
Staking Rewards
Rewards are earned by delegating stakes to a validator that is voting correctly and validators securing the network. These rewards are being paid in epochs (approximately every 2.5–3 days). Currently, the total rewards given to stakers and validators are 128k SOL per epoch.
We do hope this article on Block Rewards within Solana
Find out more on our dashboards: https://solana.fm/dashboards
