goes to zero?
Most likely much lower. 5% APY is reasonable.
From 1st January a fixed amount of 10m Kava per year will be pulled from the community pool as per the Github link in Proposal #168 My own personal unofficial estimate would suggest that 10m shared between the current 130.87m bonded Kava should give around 7.7% APR before commission
Add mandatory 5% commission and we have 2%
Commission doesn't work like that. It's 5% of your rewards, so 10% gets reduced to 9.5% for example
7.7 apr for a deflationary coin is a good rate; but how are they going to pay such interest, are the fee enought to cover this amount?
For 18 months they've been building a large pool of tokens in the community pool and origins DAO Scott suggested in his recent Twitter chat that we have plenty to last 10 years. Long term the need for revenue and tx fees to become fully self supporting
That's very good indeed, Kava can become a store of value currency.
Let's see for this the price must be high and stabel
What interest and fee are you referring to?
Currently, there are 370 million KAVA tokens in the community pool available for use. If the governance proposal does not change, 10 million tokens will be allocated to staking annually, which will result in a total of 100 million tokens being removed from the community pool over the next 10 years.
Currently, there are 370 million KAVA tokens in the community pool available for distribution. If the parameter doesn't change, 10 million tokens will be allocated to staking annually, which will result in a total of 100 million tokens being distributed from the community pool over the next 10 years.
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