| A | B | C | D | E | F | G | H | I | J | K | L | M | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
1 | |||||||||||||
2 | - This is an example of MEV revenue's impact on validator economics. These are rough estimates and continue to be refined | Links: | |||||||||||
3 | - MEV activity is dynamic and may undershoot these estimates during early rollout phases | Jito Discord | |||||||||||
4 | - Validators should copy (or download) this sheet and play with the assumptions | Website | |||||||||||
5 | - The figures in blue are assumptions that can be modified to better customize for each validator | Documentation | |||||||||||
6 | - To discuss this or onboarding, checkout out the links to the right | Jito validator contact: brian@jito.wtf or twitter:brian_smith_0 | |||||||||||
7 | - Non-MEV components based on Cogent's Crypto's calculator. Thanks Ben! | ||||||||||||
8 | |||||||||||||
9 | |||||||||||||
10 | EXAMPLE VALIDATOR ECONOMICS | Notes | |||||||||||
11 | Delegate Stake | Self Stake | Combined Stake | - Ignore self-stake column if 0 stake | |||||||||
12 | Total Network Stake (millions) | 370 | 370 | 370 | - Total Solana staked on network currently | ||||||||
13 | SOL Staked | 1,000,000 | 0 | 1,000,000 | - Placeholder, update with individual estimates | ||||||||
14 | Price | 20.00 | 20.00 | 20.00 | |||||||||
15 | Validator TVL ($) | 20,000,000 | 0 | 20,000,000 | |||||||||
16 | |||||||||||||
17 | Staking Comission Revenue: | ||||||||||||
18 | Staking Yield (%) | 6.00% | 6.00% | 6.00% | - Epoch 360 inflation rate | ||||||||
19 | Staking Yield ($) | 1,200,000 | 0 | 1,200,000 | |||||||||
20 | |||||||||||||
21 | Validator Comission (%) | 8.00% | 100.00% | 8.00% | - Placeholder, update with individual estimates | ||||||||
22 | Comission Revenue | 96,000 | 0 | 96,000 | |||||||||
23 | |||||||||||||
24 | MEV Revenue: | ||||||||||||
25 | Network MEV ($ million) | 45 | 45 | 45 | - Jito estimated baseline (can edit) | ||||||||
26 | MEV Tip % | 15% | 15% | 15% | - Jito estimated baseline (can edit) | ||||||||
27 | MEV Network Tips ($ millions) | 7 | 7 | 7 | |||||||||
28 | Validator Pro Rata Share | 0.270% | 0.000% | 0.270% | - (Validator stake) / (Network stake) | ||||||||
29 | MEV Yield | 18,243 | 0 | 18,243 | - Tips to validator+staker based on pro rata stake | ||||||||
30 | |||||||||||||
31 | Validator MEV Comission | 50.00% | 100.00% | 50.00% | - Placeholder, update with individual estimates | ||||||||
32 | Validator MEV Revenue | 9,122 | 0 | 9,122 | - Annual MEV revenue to validator | ||||||||
33 | |||||||||||||
34 | Block Reward Revenue: | ||||||||||||
35 | Block Rewards (tx and storage rent fees) | 0.006 | 0.006 | 0.006 | - Per Cogent Crypto | ||||||||
36 | Skip Rate | 4.80% | 4.80% | 4.80% | - Per Cogent Crypto | ||||||||
37 | Blocks (annual) | 152,951 | 0 | 152,951 | - Cogent: 432,00 slots per epoch * 131 epochs per year * pro rata stake share | ||||||||
38 | Block Reward Revenue ($) | 17,473 | 0 | 17,473 | |||||||||
39 | |||||||||||||
40 | Total Revenue (Excluding MEV) | 113,473 | 0 | 113,473 | |||||||||
41 | Total Revenue (Including MEV) | 122,595 | 0 | 122,595 | |||||||||
42 | MEV % increase in revenue | 8.04% | n/a | 8.04% | |||||||||
43 | |||||||||||||
44 | Operating Costs: | ||||||||||||
45 | Server Cost | 8,400 | 8,400 | 8,400 | - Per Cogent Crypto | ||||||||
46 | Voting Cost | 5,397 | 5,397 | 5,397 | - Cogent: 2.06 SOL per epoch * 131 epochs per year | ||||||||
47 | Total Operating Costs | 13,797 | 0 | 13,797 | |||||||||
48 | |||||||||||||
49 | Validator Net Income (excl MEV) | 99,676 | 0 | 99,676 | |||||||||
50 | Validator Net Income (incl MEV) | 108,798 | 0 | 108,798 | |||||||||
51 | |||||||||||||
52 | |||||||||||||
53 | SENSITIVITY TABLE: MEV REVENUE INCREASE TO VALIDATOR REVENUE | ||||||||||||
54 | Validator Comission | Annual Network MEV Revenue ($ million) | |||||||||||
55 | on MEV Tips % | $30.0 | $45.0 | $60.0 | $75.0 | $90.0 | |||||||
56 | 10.00% | 1% | 2% | 2% | 3% | 3% | |||||||
57 | 20.00% | 2% | 3% | 4% | 5% | 6% | |||||||
58 | 30.00% | 3% | 5% | 6% | 8% | 10% | |||||||
59 | 40.00% | 4% | 6% | 9% | 11% | 13% | |||||||
60 | 50.00% | 5% | 8% | 11% | 13% | 16% | |||||||
61 | 60.00% | 6% | 10% | 13% | 16% | 19% | |||||||
62 | 70.00% | 8% | 11% | 15% | 19% | 23% | |||||||
63 | 80.00% | 9% | 13% | 17% | 21% | 26% | |||||||
64 | |||||||||||||
65 | - This table shows MEV's increase in validator revenue given assumptions around MEV's market size and tip % | ||||||||||||
66 | - The table uses the same comission % and other metrics from above. It represents the combined delegated + self-stake. | ||||||||||||
67 | - Unsuprisingly, as network MEV revenue and the tip % increase, validators will earn MEV revenue | ||||||||||||
68 | - We believe both of these metrics (network MEV and tip %) will increase as the market becomes more mature | ||||||||||||
69 | |||||||||||||
70 | EXAMPLE STAKING YIELD | ||||||||||||
71 | |||||||||||||
72 | Staking Comission Revenue: | All assumptions from Validator section above. Edit there. | |||||||||||
73 | Staking Yield (%) | 6.00% | - Epoch 360 inflation rate | ||||||||||
74 | Validator Comission (%) | 8.00% | - Placeholder, update with individual estimates | ||||||||||
75 | Stake-only Yield (%) | 5.52% | |||||||||||
76 | |||||||||||||
77 | MEV Revenue: | ||||||||||||
78 | Network MEV ($ million) | 45 | - Jito estimated baseline (can edit) | ||||||||||
79 | MEV Tip % | 15% | - Jito estimated baseline (can edit) | ||||||||||
80 | MEV Validator Tips ($ millions) | 7 | |||||||||||
81 | |||||||||||||
82 | Nework Staked TVL ($ million) | 7,400 | - Network stake (408mm) * SOL price | ||||||||||
83 | MEV Tips to Val./Stakers (% of TVL) | 0.09% | - Total tips distributed to network annually | ||||||||||
84 | |||||||||||||
85 | Validator MEV Comission | 50% | |||||||||||
86 | MEV Yield to Staker | 0.05% | |||||||||||
87 | |||||||||||||
88 | Staking Yield (excl. MEV) | 5.52% | |||||||||||
89 | Staking Yield (incl. MEV) | 5.57% | |||||||||||
90 | Overall APY Increase | 0.05% | |||||||||||
91 | Yield Increase Multiple | 0.83% | |||||||||||
92 | |||||||||||||
93 | SENSITIVITY TABLE: STAKING YIELD INCLUDING MEV | ||||||||||||
94 | Validator Comission | Annual Network MEV Revenue ($ million) | |||||||||||
95 | on MEV Tips % | $30.0 | $45.0 | $60.0 | $75.0 | $90.0 | |||||||
96 | 10.00% | 5.57% | 5.60% | 5.63% | 5.66% | 5.68% | |||||||
97 | 20.00% | 5.57% | 5.59% | 5.62% | 5.64% | 5.67% | |||||||
98 | 30.00% | 5.56% | 5.58% | 5.61% | 5.63% | 5.65% | |||||||
99 | 40.00% | 5.56% | 5.57% | 5.59% | 5.61% | 5.63% | |||||||
100 | 50.00% | 5.55% | 5.57% | 5.58% | 5.60% | 5.61% | |||||||