Currently it is not being funded by revenue. Hedera has allocated 1 billion HBAR for one year of staking rewards. That’s 2.74 mil per day. We have about 5.6 billion staked and participating in rewards. Once we go over 15 bil staked and participating then the 2.74 mil is spread too thinly and the 6.5% will start to decrease. At some point in the future we all hope there is enough revenue from txs to fund ongoing staking rewards. We are a long way from that point.
They’ve specifically allocated 1B to staking? Account 0.0.800 currently has just over 100m ħ in it and iirc started at 250m. Did they say they’d distribute a max of 2.74m/day for only a year, and didn’t say what happens after that, or are you extrapolating from somewhere?
Treasury Management & Coin Economics Committee Report Dr. Leemon B. shared an update on the development of the network’s staking feature. Since the last Council meeting, CoinCom approved the increase of the staking reward rate from 0 hbars/day to (1 billion hbars/365) per day (with a cap of 6.5% per year) once certain factors are satisfied. https://files.hedera.com/2022-09-14-Hedera-Council-Meeting-Minutes-v.Final.pdf
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