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.
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.
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:
Based on this, we arrive at the following formula: