Navigation

  • Login
  • Register
    • Categories
    • Recent
    • Users
    • About

    Whether or not we should lower the APY?

    Reserve Currency
    6
    8
    37
    Loading More Posts
    • Oldest to Newest
    • Newest to Oldest
    • Most Votes
    Reply
    • Reply as topic
    Log in to reply
    This topic has been deleted. Only users with topic management privileges can see it.
    • J
      justinmark last edited by

      As you know, the APY from staking is partly determined by the number of bonds being sold. This is because a part of the revenue from selling bonds is used to mint new tokens and reward users with high APY.
      In fact, APY is one of the most significant factors that affect the user's investment decision. The higher APY, the more attractive a cryptocurrency project is. Thus, increasing APY is an effective way to attract new users and retain the old ones.

      However, an unreasonable high level of APY leads to risks for the whole system in the long term, especially in the volatile market.

      TraDAO is drawing the attention of users thanks to its unique features (such as bond installment or TOD reputation) and, more importantly, an attractive rewarding program.
      More specifically, the APY for staking TOD now is 6,540.86%, and the compound period is 8 hours. So that means users' balance will increase every 8 hours (rebase period).

      However, as I mentioned above, a very high APY risks the whole system. Given the sustainable development of the protocol, I wonder whether or not we should lower the APY?
      What do you think about it?

      C V 2 Replies Last reply Reply Quote 2
      • C
        Cobra Kai @justinmark last edited by

        @justinmark I completely agree with you.

        Intel i9-9900ks | RX 570

        1 Reply Last reply Reply Quote 0
        • V
          Vincente @justinmark last edited by

          @justinmark I'm a newbie and I decided to invest partly because of the high APY. So the lower APY does not really make sense for me at the moment LOL. But in the long-term, maybe its needed.

          V 1 Reply Last reply Reply Quote 1
          • V
            Violeta @Vincente last edited by

            @vincente Anyway, it might be necessary to lower the APY for the sustainability of the protocol. However, it also needed to attract new users who mostly care about the constant benefit from high APY instead of the long-term development.

            V 1 Reply Last reply Reply Quote 0
            • V
              Vincente @Violeta last edited by

              @violeta, it's such a chicken-and-egg situation.
              If the APY is actually descended, I think the team needs to try their best to convince the new one to believe in their long-term benefits LOL.

              V 1 Reply Last reply Reply Quote 0
              • V
                Violeta @Vincente last edited by

                @vincente Yes! The team is doing pretty well now. However, to be honest, in a field like crypto, it's quite hard to earn people's trust only by promising something in the future. That's the reason why the team needs to do more than that.

                victoriaph 1 Reply Last reply Reply Quote 0
                • victoriaph
                  Victoria Phinn @Violeta last edited by

                  @violeta My pov, it's hard to convince new users that they should believe in their long-term benefits for sure.

                  1 Reply Last reply Reply Quote 0
                  • quanTrava
                    Quan Dinh last edited by

                    What APY do you guys expect? Do you want us create a snapshot voting??? 😊

                    1 Reply Last reply Reply Quote 0
                    • 1 / 1
                    • First post
                      Last post
                    Powered by Trava Finance | Copyright © 2021 Datalink Foundation Pte. Ltd. All Rights Reserved