This document serves as a concise explainer for the methodology behind the mump2p APR Calculator, which estimates the potential increase in validator operator revenue when using mump2p.
Validator operators earn rewards by participating in Ethereum’s consensus process. These rewards depend on several factors, including validator performance, network conditions, and how efficiently blocks propagate through the network.
The calculator estimates how improvements in block propagation speed translate into higher validator revenue. Specifically, it evaluates the additional Annual Percentage Rate (APR) a validator operator may earn when blocks propagate faster through the network. In practical terms, this means quantifying how much additional slot time a validator can use when proposing a block later in the slot while still ensuring that the block reaches the network in time for attestations, as enabled by mump2p, and how this increase in effective slot time translates into higher validator revenue.
In this document, APR is measured at the level of a node operator managing a fleet of validators.
A detailed analysis of the impact of latency improvements and the methodology underlying this calculator can be found on validator revenues can be found on our blog ****[1].
The calculator takes a validator operator’s total active stake as input and estimates the revenue impact of improved propagation performance.
It returns:
Validator revenue on Ethereum comes from two main sources:
These rewards are paid by the protocol and primarily come from:
To maximize attestation rewards, validators should align their attestations with the chain that ultimately receives the majority of the voting stake (≈66% of the voting ETH). Achieving this typically requires observing block proposals with low latency, as earlier block reception increases the probability that validators attest to the block that will become the canonical head.