How much can I earn by staking Matic ?
The current reward rate for Matic staking ranging between 5-7% but is dependent on a number of different factors.
Polygon allocates 12% of its total supply of 10 billion tokens to fund the staking rewards. These rewards are primarily meant to jump-start the network, while the protocol in the long run is intended to sustain itself on the basis of transaction fees. The 12% allocated is split in such a way to ensure the gradual decoupling of staking rewards from being the dominant component of the validator rewards.
| Year | Target Stake (30% of circulating supply) | Reward Rate for 30% Bonding | Reward Pool |
|---|---|---|---|
| First | 1,977,909,431 | 20% | 312,917,369 |
| Second | 2,556,580,023 | 12% | 275,625,675 |
| Third | 2,890,642,855 | 9% | 246,933,140 |
| Forth | 2,951,934,048 | 7% | 204,303,976 |
| Fifth | 2,996,518,749 | 5% | 148,615,670 + 11,604,170 |
Below is a sample snapshot of the expected annual rewards for the first 5 years considering staked supply ranging from 5% to 40% at 5% interval
| % of circulating supply staked | 5% | 10% | 15% | 20% | 25% | 30% | 35% | 40% |
|---|---|---|---|---|---|---|---|---|
| First | 120% | 60% | 40% | 30% | 24% | 20% | 17.14% | 15% |
| Second | 72% | 36% | 24% | 18% | 14.4% | 12% | 10.29% | 9% |
| Third | 54% | 27% | 18% | 13.5% | 10.8% | 9% | 7.71% | 6.75% |
| Forth | 42% | 21% | 14% | 10.5% | 8.4% | 7% | 6% | 5.25% |
| Fifth | 30% | 15% | 10% | 7.5% | 6% | 5% | 4.29% | 3.75% |