# Only 60% of the rewards made by a baker are distributed to its delegators?

According to TzScan.io, in the "rewards" TAB, if we sum the percentages of the "Share" column, we get always a value lower than 100%. I would like to understand how the earnings of a baker are distributed to its delegators. Is it correct to assume an aprox. 40-60% ratio of what stays for the baker and what is distributed as rewards to its delegators?

• I've noticed also that this percentage was higher when the baker started operating and has been decreasing along time. Commented Mar 26, 2019 at 17:38

## 1 Answer

You also need to take into account the (evaluated) balance of the baker on the tz1 address, which also generates rewards, but which are not stated under the rewards tab. Under the rewards tab, only the KT1 addresses of the delegators are shown. It is not uncommon for a baker to own 40% of the total stake, so I don't think there is anything suspicious here.

Delegators always receive rewards in relation to their amount delegated to the baker, not in relation to the total stake.

• Yeah. The doubt is not about suspecting any wrongdoings, but to understand the process. I've seen that of the total rewards made by a baker, only a percentage goes for distribution along delegators. I wish to know how this is calculated. Commented Mar 26, 2019 at 18:59
• For the percentage calculation you divide the delegated amount of each delegator by the total staking balance at snapshot times 100. For instance, if you assume "x" is the delegated amount, "y" the total staking balance at snapshot, and "z" the percentage reward of the delegator, then the formula is (x/y)*100=z Commented Mar 26, 2019 at 19:08
• Ok, I understand that. But how to calc the percentage of the total rewards that is going to be distributed (in this case, 64.18%) and the percent that stays with the baker (in this case 35,82%)? In the example above, the baker made a total of 12 XTZ in rewards. But only 7,82 went to be distributed to delegators and 4,18 stayed with the baker. What is the formula to get those percentages? Commented Mar 26, 2019 at 19:16
• It's the same formula. You divide those rewards by the total rewards times 100. Commented Mar 26, 2019 at 19:21
• Ok. But that way you are achieving a result based on information that was delivered by the network to you. You are finding out the complement parcel. My doubt is: Is there a formula the network uses to determine this 64-36% ratio? How it decides it will distribute 64% in a cycle? (and 90% in another one?) Commented Mar 26, 2019 at 19:26