How Is the Expected Return on Staking Calculated?
The expected return on staking is typically calculated as an Annual Percentage Yield (APY) based on the total amount of cryptocurrency staked, the total number of validators, and the network's issuance rate. It is dynamic and fluctuates based on network participation.
The formula generally involves (Rewards Earned / Staked Amount) (365 / Time Period) and can also include transaction fees earned, minus any potential slashing penalties.