Have you ever wondered how staking rewards really work?
Where do they come from and what hidden function does your staked $LUNA carry out?
The answer may surprise you:
Where do they come from and what hidden function does your staked $LUNA carry out?
The answer may surprise you:
First, it’s important to understand WHY you get rewarded for staking $LUNA.
You see, #LUNAtics get to collect staking yield for helping secure the @terra_money network.
The higher the amount you pledge, the more returns you get.
These rewards come from 4 major sources:
You see, #LUNAtics get to collect staking yield for helping secure the @terra_money network.
The higher the amount you pledge, the more returns you get.
These rewards come from 4 major sources:
#1: Gas Fees
#2: Tax Fees
#3: Swap Fees (thanks to Col-5 Migration)
#4: Airdrops
Here's what you need to know about each:
#2: Tax Fees
#3: Swap Fees (thanks to Col-5 Migration)
#4: Airdrops
Here's what you need to know about each:
Source #1: Gas Fees
Imagine gas fees as a toll rate.
Gas fees are charges added on each transaction to avoid bots spamming the network.
In other words:
If you want your transaction on the network to go through, you'll have to pay for it.
Here's the most important part:
Imagine gas fees as a toll rate.
Gas fees are charges added on each transaction to avoid bots spamming the network.
In other words:
If you want your transaction on the network to go through, you'll have to pay for it.
Here's the most important part:
Validators are the ones who set minimum gas prices.
They also reject transactions below this threshold.
At the end of every block, the fees are disbursed to the nodes depending of their staked $LUNA.
And this is where you get your cut from the fees.
Next stop:
They also reject transactions below this threshold.
At the end of every block, the fees are disbursed to the nodes depending of their staked $LUNA.
And this is where you get your cut from the fees.
Next stop:
Source #2: Tax Fees
Tax fees are basically stability rates.
But unlike gas fees, this tax is charged by the @terra_money network.
This percentage is usually between 0.1% to 1% and its capped at 1 $UST.
Either staking @anchor_protocol, @pylon_protocol, etc. you can't avoid it.
Tax fees are basically stability rates.
But unlike gas fees, this tax is charged by the @terra_money network.
This percentage is usually between 0.1% to 1% and its capped at 1 $UST.
Either staking @anchor_protocol, @pylon_protocol, etc. you can't avoid it.
Source #3: Swap Fees
Swap Fees are the new kid in the block.
Before Columbus-5, swap fees were burnt after every transaction.
Today, they go to your wallet as a staking reward.
This new policy adds up to about 2% less burn.
It will also increase LUNA staking to above 10%
Swap Fees are the new kid in the block.
Before Columbus-5, swap fees were burnt after every transaction.
Today, they go to your wallet as a staking reward.
This new policy adds up to about 2% less burn.
It will also increase LUNA staking to above 10%
Source #4: Airdrops
This is the one you are probably most familiar with.
Yet…
Do you know where they actually come from?
Airdrops are given by projects (and from @terra_money, as many folks think)
Currently, there are $ANC, $MIR, and $MINE airdrops.
Now picture this:
This is the one you are probably most familiar with.
Yet…
Do you know where they actually come from?
Airdrops are given by projects (and from @terra_money, as many folks think)
Currently, there are $ANC, $MIR, and $MINE airdrops.
Now picture this:
With dozens of projects coming in the next months...
Your staking rewards are about to skyrocket into a parabolic growth.
Keen to know when that's happening?
Then you can't afford lose the following:
Your staking rewards are about to skyrocket into a parabolic growth.
Keen to know when that's happening?
Then you can't afford lose the following:
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