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?