How is the APR calculated


I’m new to Fx and I’d like to start getting involved. May I ask how is the Validator’s APR calculated on the Mainnet?


Hi Lobster, welcome to Function X!

First off, Function X has a dynamic inflation rate mechanism that fluctuates based on the total bonded tokens.

Example: (it doesn’t fluctuate that wildly, for illustration purposes only)

There are a few factors that affect the APR - it changes every block depending on the bonded tokens.


  • If the staking ratio falls, the block emission will increase accordingly
  • If the staking ratio rises, the block emission will decrease accordingly

There is a maximum ceiling and a minimum floor parameter to ensure the inflation rate will not either drop to zero or sky rocket.

The reason why block emissions increase when the bonded ratio drops is to incentivize the community to delegate to reach the target of over 51% staked to better secure the network and avoid network manipulation.


  • The APR varies since each validator has a different commission

Rough Delegation Reward Formula:
( Total Delegated Tokens / APR ) / 365

This will give you roughly the same calculation as what is shown on the Estimated Daily Rewards

Validator’s Reward Formula:

[(Total current token supply * inflation rate * current staked ratio * block) * (1- community & ecosystem tax rate)] * [(total self delegated token / total staked token of the node * (1-commission rate) * participation period + commission earning]

Note: Inflation rate is not reward rate.

  • Inflation is the total emission per block (fluctuates)
  • Reward rate is after you deduct the community and ecosystem tax and other calculations

If anyone spots any inaccurate information, feel free to correct me! I’m always learning.


Wow, thanks for the detailed breakdown, I’ll definitely take some time to digest this :smiley:

I just have a few questions to ask:

  1. Is the current staked ratio: (total bonded fx tokens overall / total supply) or is it (total bonded fx tokens for the Validator / total supply)?

  2. In a very hypothetical scenario, if I delegated 5 FX to a Validator 16 days ago, and this Validator has a commission of 1%, and say my rewards from this Validator is now 0.38FX, would my APR be: about ~200%?

I’m new to this APR thing too :sweat_smile:

Yup current staked ratio = total bonded fx tokens overall / total supply

Yup, if you delegate 5 FX and you get 0.38FX in 16 days without compounding - the APR is around 173% ish.