Using the IC

How Voting Rewards Are Calculated

Learn how you can calculate voting rewards for staking ICP tokens and for participating in the governance of the Internet Computer network.

IC Academy » Network Nervous System » How Voting Rewards Are Calculated

Calculating Voting Rewards

Find out how voting rewards are calculated

The Theory Behind Calculating Voting Rewards

The Network Nervous System calculates the total neuron reward based on a predetermined schedule. The total voting reward is then divided among all neurons based on their relative claims. The relative claim of neurons participating in all governance votes is proportional to governance participation, the number of ICP tokens locked inside the neuron, and the chosen dissolve delay. Neurons can be programmed to automatically vote to ensure full voting rewards are received.

Total Neuron Reward

Distribution

All Neurons

Based on governance participation, ICP tokens locked, and disolve delay

The maturity of a neuron increases when neurons receive voting rewards. Once a neuron has hit the maturity of 1 ICP token, a new neuron can be spawned.

The voting rewards percentage depends on the chosen neuron dissolve delay:

Annualized Voting Rewards

Voting rewards in %, bar diagram

Annualized Voting Rewards

Voting rewards in %, line diagram

*Numbers are based on a trailing 24 hour annualized return. Dynamic changes of the voting reward percentages are expected over time. Rewards are also dependent on participation level in network governance, neuron age, and neuron dissolve delay.

How Are Voting Rewards Calculated?

The amount of rewards you receive for looking your ICP in a neuron (i.e. staking your tokens) depend on these factors:

Dissolve Delay

Chosen length of the dissolve delay of your neuron

Neuron Age

Age of your neuron, i.e. time since neuron started dissolving

Proposal Votes

Amount of governance proposals you have voted on

Total ICP Staked

The total amount of ICP locked in neurons

Based on this, we arrive at the following formula:

Voting Reward

Locked ICP

Total Staked ICP

  • Dissolve delay factor
  • Neuron age factor
  • Voting factor

Automatic voting

Maximize your staking rewards by enabling automatic voting in the NNS dApp

Enabling automatic voting

Submitting a Proposal

Find out how you can submit a governance proposal to the Network Nervous System (NNS)

Submit proposal