Thread by @EthereumPools

Last week we explained how #Ethereum rewards/penalties work in theory. But how do they look in practice? Let's see 👇🧵

As you may know, we aggregate validators (i.e. belonging to the same entity/operator/exchange) and track their performance in terms of 1⃣attestations and 2⃣proposals, which ultimately map to rewards 💵 and penalties 💸.

In our dashboard you can see:

-💵 each pool earns per day (i.e. Kraken, Coinbase, Binance, or other anonymous entities) = REWARDS
-💵 each pool loses per day = PENALTIES. Some small penalties (not slashing) are expected even in a perfect pool.

...and

-📉 Annualized APR (Annual Percentage Rate) with a Moving Average of 24 hours.

If REWARDS > PENALTIES, then you have a positive APR (Annual Percentage Rate) 👍

But different pools have different performances, which impact rewards 📈📉

But what is the APR that we should expect? 🤔

Well, the 🔺more validators in the network the fewer 🔻 rewards.

As per the spec, with 409.000 validators, you should expect to get 4.6% APR.

Okay, this is the theory, but how does it look in practice? 🤔

As seen in the right plot, most of the pools/operators/stakers are in the range of 4.4-4.6% APR, which matches the spec 👍

If you want to know more about #Ethereum rewards and where they are coming from, this is a good read 🔖:

https://twitter.com/EthereumPools/status/1542241205597134849

Note that in short timespans, there is some luck involved, so don't think that a pool with 4.4% is strictly worse than one with 4.8%.

Only compare APRs averaging data from large timespans.

As you can also see, some pools/operators/stakers really deviate from the average 🥹, with an APR <4%.

Is it your pool? If you want to reach out, our DMs are always open 📭. We are here to help!

Note that by optimizing rewards, we are also improving the network health.

❎Missed blocks are bad for the network
❎Late attestations are bad for the network
❎Low participation is bad for the network