Rewards calculation Methodology
Introduction
Ethereum has recently transitioned from proof of work (PoW) to proof of Stake (PoS). This transition has been called the Merge. The reason for this name is that the update literally merges two chains; the beacon chain on the consensus layer (CL) side and the Main chain on the execution layer (EL) side. The Merge of both systems (CL and EL) raised multiple important technical challenges that had to be addressed in order to achieve a flawless transition.
In the post-merge system, EL is responsible of executing the Ethereum Virtual Machine (EVM), where all the transactions and interactions with smart contracts take place. On the other side,CL is responsible of organizing validator committees, in order to ensure consensus. Validators are the ones in charge of proposing and validating the new blocks, among other tasks.
Both layers work together but they have different reward systems. Following, you will find the detailed explanation of how these reward systems work and the methodology we used to compute the data provided on this website.
