Node operators process transactions and receive token incentives. These independently owned high-spec node machines around the world are connected via Internet Computer Protocol (ICP), creating a self-sovereign network not reliant on any cloud services. Advanced cryptography allows any application or service to be run on the network in a decentralized manner via smart contracts.

The Internet Computer is a decentralized cloud blockchain, where apps can be built fully onchain, using AI, or by coding. Try caffeine.ai & icp.ninja.

ICP tokenholders own and govern the protocol. They currently take (burn) all of the total transaction fees paid by users (revenue). ICP Holders can stake their ICP on the Network Nervous System (NNS), an advanced fully on-chain DAO that facilitates liquid democracy. Staking ICP allows users to submit proposals, vote on proposals, and earn rewards for their participation in governance. Internet Computer's investors include Polychain, Scalar Capital, Amino Capital, etc.

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Internet Computer

# Internet Computer Annualized estimated rewards Methodology

## 1. Overview

The Internet Computer annualized estimated rewards metric measures the estimated annual rewards percentage that users can expect from staking ICP tokens on the Internet Computer network. This metric provides a forward-looking indicator of staking yields based on current network parameters and is calculated using network-level statistics collected directly from the Internet Computer protocol. The metric answers the business question: "What annual return can users expect from staking ICP tokens based on current network conditions?"

## 2. Data sources

The calculation relies on a single primary data source:

- **Internet Computer network statistics**: Daily snapshots of network-level metrics collected via an external scraper that interfaces with the Internet Computer protocol's statistical endpoints
- **Staking reward estimates**: Network-calculated estimates of annualized staking rewards based on current network parameters, validator performance, and token economics
- **Time series data**: Daily historical records of reward estimates to track changes in staking yields over time

## 3. Step-by-step calculation

### Component A: Raw data extraction and parsing
- **Purpose**: Extract daily network statistics and isolate the 1-year estimated rewards percentage
- **Logic**: The system processes JSON-formatted daily statistics from the Internet Computer network scraper. It extracts the `day` timestamp and the `estimated_rewards_percentage.1_year` value from nested JSON structures within the daily statistics array. Each record includes an insertion timestamp to track when the data was collected
- **Key fields**: The `timestamp` field represents the day for which statistics apply, while the `amount` field contains the raw estimated rewards percentage as provided by the network

### Component B: Data deduplication and quality assurance  
- **Purpose**: Handle multiple data insertions per day and select the most current estimates
- **Logic**: Since the scraper may collect multiple snapshots per day with updated network statistics, the system applies row numbering based on insertion timestamps. For each day, it selects only the most recently inserted data point to ensure the latest network estimates are used. This handles scenarios where network parameters or calculations are updated within a day
- **Key fields**: The `inserted_at` timestamp determines data recency, and `row_number` identifies the latest data point for each day

### Final aggregation
- **Combining components**: The system takes the deduplicated daily estimates and applies a percentage conversion by dividing the raw values by 100 to convert from whole number percentages to decimal format
- **Currency conversion**: No currency conversion is required as this metric represents a percentage rate rather than a monetary value
- **Time aggregation**: The metric maintains daily granularity with each day representing the estimated annual rewards rate for that specific date based on network conditions
- **Final calculation**: The final annualized estimated rewards value equals the network-provided 1-year estimated rewards percentage divided by 100, representing the decimal percentage rate that stakers can expect annually. The system applies Token Terminal's standardized metric schema, categorizing Internet Computer as a Layer 1 blockchain in the blockchain business segment, and forward-fills any missing days to maintain continuous time series data

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Estimated annualized staking reward rate.

Internet ComputerICP

Annualized estimated rewards

Annualized estimated rewards

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