ADA Staking Rewards kinda suck?
ADA Staking Rewards kinda suck?
Curious to hear other people’s thoughts on this.
I wasn’t expecting something crazy lucrative, but it under performs rather notably compared to pretty much any other crypto staking route?
For reference, over 15% of my crypto folio is staked ADA.
Sashitha ilepperuma Answered question October 10, 2024
I think you might be a bit fooled when it comes to APY. If it is over 10 percent it’s too good to be true. APY is basically inflation, the extra money is created out of thin air.
The people who stakes is eating the cake from the people who don’t stake. Value just don’t come from thin air.
Sashitha ilepperuma Answered question October 10, 2024
It doesn’t work like this. A token which has a 1% inflation and gives 2% rewards is better (when it comes to tokenomics) than a token which gives 10% return but has a 20% inflation
Andrew Peters Answered question October 10, 2024