Calculating DAO Active Staking Rewards (ASR) involves understanding the mechanics of Jupiter’s reward system, which is designed to incentivize active participation in governance rather than passive staking.
Step 1: Understand the Reward Pool
Dao allocates a specific pool of rewards for each ASR distribution period. This typically includes a fixed amount of $JUP tokens and sometimes additional tokens or fees from its Launchpad For Governance (LFG) system. For example:
- A recent round announced 50 million $JUP and 7.5 million $CLOUD tokens for the period from July 1 to September 30, 2024.
- Another distribution included $60 million worth of rewards, comprising 50 million $JUP and other tokens like $WEN, $ZEUS, $UPT, and $SHARK.
The total reward pool is divided among participants based on their voting activity.
Step 2: Determine Your Voting Power
Your voting power is calculated as the product of:
- Amount of $JUP staked: The number of $JUP tokens you’ve locked for staking.
- Number of proposals voted on: Each vote you cast with your staked $JUP contributes to your total voting power.
For instance:
- If you stake 1,000 $JUP and vote on 5 proposals, your total voting power is 1,000 × 5 = 5,000.
- Voting power is cumulative across all proposals in the reward period, but you must vote consistently with the same staked amount to maximize it.
Step 3: Calculate Total Voting Power Across All Participants
The total voting power is the sum of all participants’ voting power for the period. This figure represents the aggregate staked $JUP used in voting across all proposals. For example:
- If 2.4 billion voting power was recorded (as in a past quarter), this is the denominator for reward distribution.
Step 4: Compute Your Share of the Reward Pool
Your rewards are proportional to your voting power relative to the total voting power, multiplied by the total reward pool. The formula is:
{Your Reward}= {Your Voting Power}➗{Total Voting Power} ✖️{Total Reward Pool}Example Calculation:
- Scenario: You staked 10,000 $JUP and voted on 5 proposals, giving you a voting power of 50,000.
- Total Voting Power: 2.4 billion (from all participants).
- Total Reward Pool: 50 million $JUP.
- Calculation: 50,000 jup ➗ 2.4 billion Total Voting Power ✖️ 50million jup
So, you’d receive approximately 1,041.67 $JUP.
Step 5: Adjust for Additional Rewards (if applicable)
If the reward pool includes other tokens (e.g., $CLOUD, $WEN), the same voting power ratio applies to those distributions. However, exact amounts depend on how Jupiter allocates these additional rewards, which may not always be detailed upfront.
Key Considerations
- Participation: Rewards are only earned for proposals you vote on. If you miss votes, your voting power decreases, reducing your rewards.
- Estimating Future Rewards: Since the number of proposals and total voting power can vary, precise calculations require historical data or assumptions about future participation. Tools like the Jupiter DAO Rewards Calculator (available online) can help estimate based on past votes and hypothetical future scenarios.
- Reward Distribution: $JUP rewards are often auto-staked (locked for 30 days if you unstake), while other tokens may be distributed directly.
Practical Example from Past Data
- For 10,000 $JUP staked and voted on every proposal in Q1, the reward was 1,000 $JUP (valued at $850). This implies a per-vote reward rate of approximately 0.1 $JUP per staked $JUP per vote.
By staking $JUP, voting consistently, and applying the formula above with current period data, you can calculate your Jupiter ASR.