A staking rewards question
A staking rewards question
As more people start staking ADA. The staking rewards will keep going lower over the years right guys?
Will my dream of having a beautiful small family, a small animal shelter and peaceful life off of staking rewards will only be a dream? 🥲
I hold 5.2 k ada and staked away in Daedalus btw. It’s not much but it’s honest work.
Staking rewards come from treasury where a certain percentage is paid out every epoch. So as the treasury gets slowly depleted the the total actual amount paid out, also slowly declines.
However, the treasury is also filled from fees. Currently fees are only contributing a very small fraction – too small to stop the decline.
However there is no telling how this will develop in the future with both fees themselves and also number of transactions being variable.
Additionally, the decline of the treasury is very slow, so over the next 100 years or so it will pay out rewards. Rewards will influence the (dollar-)worth of your ADA much less than market fluctuations.