So if one were to withdraw the rewards every epoch,

Question

Cardano Official

Big K

So if one were to withdraw the rewards every epoch,

their APY would be lower than stated?

#ada #blockchain #cryptocurrency #english

0

01.05.2022

8 ответов

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Big K Автор вопроса

GliTↄH_ [pool: 1LOVE] I dont dm first if i do BLOCK AND REPORT ME!
its based on the previous epoch total so no

Let's say I stake 100.00 ADA at 5% APY for a year, and I do not withdraw anything. Does it mean I have 105 ADA in a year? Or if I stake the same amount, but withdraw the rewards every epoch, while never withdrawing the 100.00 ADA, does it mean my gain at the end of the year is less than 5?

0

02.05.2022

GliTↄH_ [pool: 1LOVE] I dont dm first if i do BLOCK AND REPORT ME!

Big K
Let's say I stake 100.00 ADA at 5% APY for a year,...

the first case is true yes, but the second case not exactly how it would work as you would have transaction fees for every claim and transaction of ada so you would reduce the ada held and earned by the transactions

0

02.05.2022

PipSqueak

Big K
Let's say I stake 100.00 ADA at 5% APY for a year,...

You may get a little more because your rewards are compounded. Check that the stake pool operator(SPO) is reliable though because not all SPOs give 5%.

0

02.05.2022

PipSqueak

Big K
Let's say I stake 100.00 ADA at 5% APY for a year,...

On your 2nd question, everytime you withdraw rewards you incur a transaction fee so that will eat into your ~5% rewards. On Cardano, your ADA is flexible to use anytime, the rewards are calculated every epoch snapshot (every 5 days), so mainly your ADA has to be in the wallet during the end of epoch to qualify the maximum rewards.

0

02.05.2022

Big K Автор вопроса

GliTↄH_ [pool: 1LOVE] I dont dm first if i do BLOCK AND REPORT ME!
the first case is true yes, but the second case no...

So the second case would work exactly like that if the transaction fees could be omitted? (E.g. staking 100,000 or more ADA so the tx fees would be lower than rewards.)

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02.05.2022

GliTↄH_ [pool: 1LOVE] I dont dm first if i do BLOCK AND REPORT ME!

Big K
So the second case would work exactly like that if...

You would be at a loss with transaction on that 100 being more than the reward

0

02.05.2022

PipSqueak

Big K
So the second case would work exactly like that if...

Second case would work if the SPO generates consistent reward throughout the year (if we are taking tx fees out of the equation). Again, the money in your wallet is flexible and not locked when staked. So you can forego “withdrawing” and just use whatever in your wallet while your unwithdrawn rewards still equates your wallet value to $100k. I hope you get what i mean.

0

02.05.2022

GliTↄH_ [pool: 1LOVE] I dont dm first if i do BLOCK AND REPORT ME! · Accepted Answer

GliTↄH_ [pool: 1LOVE] I dont dm first if i do BLOCK AND REPORT ME!

its based on the previous epoch total so no

0

01.05.2022

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So if one were to withdraw the rewards every epoch,

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