FAQ

What does Current Reward / KGH NFT / yr mean and how is it calculated?

The Current Reward / KGH NFT / yr represents the anticipated validator rewards per staked KGH NFT for the validator at this time. It can be calculated as follows:

\text{Current Reward / KGH NFT / yr} = \frac{\text{Yearly Validator Rewards} \times \text{Reward Boost %} \times (1 - \text{Commission Rate})}{\text{Total Number of KGH NFTs Staked}}

To break it down:

1. Yearly Validator Rewards: This can be calculated using the formula:

$$400 \times 24 \times 365 \times \text{Output Submission Probability}$$

2. Reward Boost %: Calculated as:

$$R_i = 0.4 \times \arctan(0.01 \times G_i)$$

where:

• $R_i$ represents the reward boost percentage for a validator $V_i$.

• $G_i$ is the total number of KGH NFTs staked on validator $V_i$.

The reward per staked KGH NFT decreases as more KGH NFTs are staked with a validator, while the staking reward grows with the amount of KRO tokens staked.

Example Calculation:

Consider the example values shown in the image above:

• Output Submission Probability: 36.64%

• Number of KGH NFTs Staked: 887

• Validator Reward Boost Percentage: 58.34%

Using these values:

1. Yearly Expected Validator Rewards: $400 \times 24 \times 365 \times 36.64\% = 1,283,865.6$

2. Reward Boosted Amount: $1,283,865.6 \times 58.34\% = 749,007.19$

3. After Commission (10%): $749,007.19 \times 0.9 = 674,106.47$

4. Current Reward per KGH NFT per Year: $\frac{674,106.47}{887} \approx 759.98$

This is an approximate value, as the actual calculation uses non-rounded numbers, which leads to slight differences in the example result.

Why haven't My Rewards updated?

Kroma operates as an Optimistic Rollup, meaning each submitted output is finalized after a 7-day period. Rewards are distributed only once the validator you’ve staked with receives its reward from an output that is successfully finalized.

This reward distribution process happens hourly but is conditional. Rewards are applied only when the validator has an output finalized within that specific hourly window. As a result, rewards may not be distributed every hour and, in some cases, might not appear for several days if the validator hasn’t had a finalized output. This timing ensures that rewards are accurately applied based on confirmed, finalized outputs.