A very nice ADA calculator by Dr. Ichikawa

# Staking Rewards Calculator by Dr. Ichikawa

**werkof**#2

Where does the mentioned interest rates came from?

`Interest Rate = 9.13% (1st & 2nd year), 6.28% (3rd year), 4.57% (4th year)`

**Chainomatic**#4

9.13% (1st & 2nd year)

6.28% (3rd year)

4.57% (4th year)

So for example if you have 1,000 ADA:

1,000 x 0.0913 = 91.3 ADA

9.13% = 0.0913

6.28% = 0.0628

etc

Did this help?

**Chainomatic**#8

It is a forward looking calculator, when the ** reward era** starts Cardano will operate completely decentralized until then this is an EXAMPLE of what you can expect.

Given the source I would say the reward example should be close.

This calculator only goes to up to year 4,a design choice.

Read more about Cardanoâ€™s novel reward mechanism for incentivizing Proof of Stake:

Ouroboros: A Provably Secure Proof-of-Stake Blockchain Protocol

**Vanamonde**#9

@Chainomatic I wish I could understand that paper, but that math is accessible only to PhDs, am I wrong?

would be nice someone summing it up to make it accessible to common mortals

**isferos**#10

At the top of the calculator site, it says:

This site is unofficial and the result is approximate. We canâ€™t guarantee your future rewards.

It sounds like the rates of return are currently speculative.

**vantuz-subhuman**#12

All these questions, without an answerâ€¦

And yet, 3 months later:

We are all interested, but I think the answer is lost in time

P.S. But everyone seem to enjoy some magic that shows them â€śmuch profit!â€ť =)

**Adafans_io**#13

**Adafans_io**#15

Friendsâ€¦ please review this â€śbasicâ€ť math

so 2000 ada per slot

for 3 744 961 slots

1 epoch = 21599 slots

so for 173 epochs (865 days

7 489 922 000 ada will be minted

-25 % to treasury = 5 617 441 500 distributed as rewards

5 617 441 500 ada during 865 days (2.3 years) = 1 year = 2 442 365 869 ada

Circulating Supply

25,927,070,538 ADA

9% of it is ~ 2.3 bil ada - very close to this 2.4 bil math

**If all ada will be staked we will still be getting almost 10%**

**if less, than even more**?

**_ilap**#16

Thatâ€™s nice, where did you get that as I was trying to find any related stuff on the web archive and other sources wo/ any success.

**Adafans_io**#17

A print screen from https://cardanodocs.com/cardano/monetary-policy/ (old version obv)

**vantuz-subhuman**#18

Thank you @Adafans_io for finally resolving this age-old question!

I now understand the reasoning behind the calculator, so that question is closed, thank you!

About the numbers, tho: they still seem waaaay off to me 10% inflation is way much, and then rapid drop to 5% seem way rapid. It would be an explosive inflation for few first years decreasing at speed `2000/2^(year-1)`

so in year 6 it would already be `2000/2^5 = 2000/32 = 62 ADA per block`

and this would only be 2025, which is not that far away. I guess ADA would cost more in 2025, but not necessarily **that** much more, and the competition would also probably get higher for pools.

In the current revision of the monetary policy - thereâ€™s no such numbers, which makes sense to me (https://cardanodocs.com/cardano/monetary-policy/). I reckon something more smooth, like: 5% first year, 4.5% next year, 4% next year, 3.66% next year, 3.33% next year, etc. would be more suitable, but I didnâ€™t run the math, tho

UPD: math is *waaaaay* off, since I wrongly assumed that halving would happen each year. In reality it would happen ~ each 2.5 years (3â€™744â€™961 slots, but it implies an assumtion that slot time will not change, so in reality might be way more often, if we switch, for example to a 10 second slots). That would give us inflation reduction at more conservative rate of `2000/2^((year/2.5)-1)`

, so 62 ADA per block would be reached in around year 2031, not 2025. Sorry for the mistake.

**Adafans_io**#20

why they used 2000/1000/500 in old policy? Halving countdown for btc http://www.bitcoinblockhalf.com/