P2P Validator: our payout model for Tezos rewards is changed

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At p2p.org we want to build the most simple and secure staking service for our clients. Our delegators prefer to get their rewards faster and we have done it! We are improving the staking experience for all our delegators making P2P Validator a comfortable and robust partner to stake with.

First Tezos payout 40% faster

When someone delegates XTZ to a baker, the staked amount begins to generate rewards 7 cycles (1 cycle ~ 3 days) after the cycle the delegation was made. At the end of this period stake earns a portion of the total rewards generated in each of the following cycles. These rewards get frozen for 5 cycles together with the security deposits. If a baker double-bakes or double-endorses these funds get seized from the baker as a punishment measure. In addition, the baker loses all the rewards and fees that were locked together with the security deposits.

Each baker decides their reward payout model. To make the staking process easier we will pay rewards that are frozen from our own funds since they are already earned. The first payout will follow after the 7th cycle. All delegators will get their rewards in advance even in cases of slashing.

New delegators

Example - you started staking at cycle 154. The user will get their first reward after twelve cycles. Rewards begin accumulating after the 7th cycle. The first reward will follow at cycle 166. However, if you delegate to P2P Validator you will get your first payout at cycle 161, which is 15 days earlier than originally expected. This method decreases the wait period for the first payout by 40%.

Recent delegators

On October 1, 2019 our existing delegators will get their rewards that are currently frozen and will continue to receive payouts each following cycle. For example, if you delegated in 145 cycle, you will get rewards for two cycles (C152, C153) with two transactions. Each payout will correspond with the reward of the cycle. After that you will get payouts each cycle, so the next reward will be distributed at cycle 155.

Early delegators

For our early clients who have been with us for more than twelve cycles, these changes will mean that you will receive your frozen rewards immediately. For example, if you delegated at cycle 142 under the old payout model you would have received rewards for cycle 149 at cycle 154. In our new model, at cycle 154 you will receive five payouts for cycles 149, 150, 151, 152, 153 that correspond with the reward of the cycle. After that cycle you will continue to receive rewards each following cycle without further delays or shortfalls. Thank you for delegating with us!

We have confidence in the resilience of our infrastructure. We take full responsibility for any losses in the event of double-baking/endorsing occurring. In other words, if such an event takes place all delegators will get their rewards as planned and losses will be assumed by our bakery.

Safety of rewards for our delegators is our top priority. We insure our payouts with Baking Bad so, if we miss a significant number of blocks or endorsements (in other words if our performance is less than 90%), the corresponding reward will still be paid. We actively manage our self-bond to increase capacity and maintain the highest possible reliability AAA+ rating.

We hope such a payout model will add value for our delegators and simplify the understanding of our rewards payout schedule for Tezos.

If you have any questions feel free to contact our team. We are always open for communication.

Thanks to Baking Bad, David Telfer and our active delegator John for their help in improving this article.

P2P Validator offers high-quality staking facilities and provides up to date information for educational purposes. Stay tuned for updates and new blog posts.

Web: https://p2p.org

Stake XTZ with us: https://p2p.org/tezos

Twitter: @p2pvalidator

Telegram: https://t.me/p2pvalidator

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Alex Bondar

Research & Analytics at p2p.org.

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