Validators stake POL tokens as collateral to secure the network and earn rewards in return. Rewards consist of staking rewards and transaction fees: Polygon allocates 12% of its total supply of 10 billion tokens to fund staking rewards. The yearly incentive is fixed, distributed to all signers periodically, irrespective of overall stake or target bonding rate.Documentation Index
Fetch the complete documentation index at: https://docs.polygon.technology/llms.txt
Use this file to discover all available pages before exploring further.
Reward schedule
| 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 |
| Fourth | 2,951,934,048 | 7% | 204,303,976 |
| Fifth | 2,996,518,749 | 5% | 148,615,670 + 11,604,170 |
Annual reward rates by staked supply
Expected annual rewards for the first 5 years, for staked supply ranging from 5% to 40%:| % of circulating supply staked | 5% | 10% | 15% | 20% | 25% | 30% | 35% | 40% |
|---|---|---|---|---|---|---|---|---|
| Annual reward for year | ||||||||
| 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% |
| Fourth | 42% | 21% | 14% | 10.5% | 8.4% | 7% | 6% | 5.25% |
| Fifth | 30% | 15% | 10% | 7.5% | 6% | 5% | 4.29% | 3.75% |
Who receives rewards
- Validators: earn staking rewards and transaction fees. Validators may charge a commission on rewards earned by their delegators.
- Delegators: earn staking rewards proportional to their delegated stake, minus validator commission.
- All staked funds are locked in a contract on the Ethereum mainnet. No validator holds custody over delegator tokens.