A crucial yet often misunderstood element of blockchain tokenomics. In this dedicated section, we explain why inflation is a powerful tool for ensuring a network's long-term stability.
Aleph Zero employs a uniform era payout, meaning that in each era, both validators and nominators are rewarded a constant amount of tokens, which is approx 73 921 tokens, calculated as 0.9 * 30 mln tokens divided by 365.25 – the average number of days in Julian year.
Rewards key takes
Validators and their nominator’s reward cache are proportional to the validator’s uptime. Validators and all their nominator’s reward cache are currently not proportional to the validator’s stake. Once the next update occurs this point will be moot. The consequence of the current scenario is that it is more profitable to nominate validators that currently have fewer nominations in total. Rewards assigned to a particular validator, are divided among the validator itself and its nominators proportionally to their stake.