to me please what will happen with my $1000 staked in Kava, when:
A) Staking reward is 34%
B) Inflation is 100%
C) Token price / market cap remains the same for simplicity
Does it mean in years time from now, my realised profit of $1000 in kava, will be worth
(1000+(1000*0.34)) / 2
Where 1000 is the original investment, 0.34 interest rate and 2 is effectively amount of current token supply in years time.
How does it give me opportunity to earn? On what basis?
Why staking reward isn't double?
Firstly the staking reward of 34% is based on 20% inflation going to all staked Kava which is currently 58.9% of the total With 100% inflation only 20% is going to Kava Stakers as before the extra 80^ is building the community pool
Thank you, but give me an idea here's, obviously however noble the project is, I'm not here to lose money. $1000 invested in staking before the incentive was voted, what is the dollar value in year's time, given the price of the token stays the same, please?
In C) it is impossible for the ratio between marketcap and token price to remain the same when the total supply changes as Marketcap = token price * supply
Liquidity pools wont be harmed?
If the token price remains exactly the same as it has today, the marketcap of the project will have doubled and the value of your investment will have increased by 34% to $1,340 plus $30-$40 worth of hard and SWP tokens
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