As the move to PoS gets closer, I'm trying to get more details on how the PoS validators will get compensated. In PoW, it is based on formulas and the awards are transparent. Not so for staking unless I'm missing something obvious.
The current proposal is to pay Validators between 1-3% interest per year on the amount of ETH someone is putting at risk to run a validator.
The risk / costs of staking are related to:
- Tying up their ETH and losing liquidity (duration of time the validator is logged in and validating + the time required to log off the proposed 4 months waiting period to get your deposit and interest back)
- Risk of having your deposit slashed for any of the published slashing conditions
- Expense of keeping your node on the network
Based on what I have read, you basically seen no interest until you log off, then you get it all at once (your initial deposit + any interest earned - any slashing fees).
In PoS, what happens to:
- Block rewards, currently at 3 ETH
- Uncle awards, currently calculated by the formula (U_n + 8 - B_n) * R / 8
- The gas for the transactions in the block