Terra: Reward Analysis
This dashboard goes through rewards on the Terra blockchain over the last 30 days and drills down into rewards that each validator gets.
The total rewards earned over the past month average out to about 0.34% APR per month, which lines up with the numbers we see on the daily data.
In conclusion, through this dashboard, we looked at how many LUNA were distributed to validators in staking rewards over the past 30 days, the distribution of the rewards across validators and used the total amount lof LUNA staked to guide us about the APRs that were be achieved through staking.
Okay, so the daily APR on LUNA looks to be about 0.01% per day or about 3.65% APR per year (excluding airdrops), which seem reasonable given most of my rewards do seem to come from airdrops as opposed to staking rewards. This also lines up with what we see on Terra station with the daily rewards for staking at 0.01% (on the staking page).
So, now we have a sense of the daily rewards validators get, the reward distribution amongst validators and the overall daily APR for rewards. Ideally, I'd like to be able to provide daily APR for each validator but that doesn't seem possible at this time due to the keys in the validator_voting_power
table not being joinable with other tables.
Now, to bring it all together and round off our analysis let's take a look at the total rewards earned over the last month and the total rewards per validator:
Again, we see the steep drop off in reward percentage for the top validators (apart from Staking Fund interestingly) at the end of June.
The total reward that went to the top 10 validators (the ones in our time-series) on the 3rd of June was about 54% of the total rewards and on the 2nd of July was about 47.69% of the total rewards. The haircut in the rewards for the top 10 validators was due to the call to decentralise Terra's validator set being incentivised by higher Nebula airdrop rewards for smaller validators.
I still think the staking is far too centralised and smaller validators can do a better job of marketing themselves to the community and showcase their quality of service.
Okay, now we have a decent sense of how many rewards validators get for staking and how these rewards are distributed across validators.
Next, let's look at some macro numbers for how much LUNA rewards are given out each day per LUNA staked:
The table obviously lets us see some information about reward distribution (and how the top validators do get a lot of rewards) but is much harder to read than I'd like, so here's a time-series view of reward distribution changing across the top 10 validators:
Okay, the data we get here seems reasonable. Most LUNA that was staked was staked with the largest validators until recently. We see three groups of validators rewards really, the top 3 validators earning a lot in rewards, the middle group earning somewhere between 1000 to 2000 LUNA in rewards and the last group of small validators with < 1000 LUNA in daily rewards.
Moreover, we also see that due to Terra CEO, Do Kwon incentivizing delegators to delegate with smaller validators to collect the Nebula airdrop there has been a steep decrease in the amount of LUNA rewards (due to a steep decrease in staked LUNA) for the largest validators and a proportional increase in the rewards for the smaller validators.
Okay, but this data tells us that large validators get a lot of LUNA, great. But what proportion of LUNA rewards do the top validators get?
The table below provides this data for all validators sorted by date and daily reward percentages (in descending order):
The first thing to look at when thinking about rewards is to look at how much LUNA each validator makes in rewards every day (using end_block in transactions as advised in the question). It serves as a baseline for our understanding of these numbers whilst also serving as the bedrock query for our analysis: