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Why Do Crypto Staking Rates Decrease Over Time? - Investment - Nairaland

Nairaland Forum › Nairaland General › Investment › Why Do Crypto Staking Rates Decrease Over Time? (244 Views)

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Why Do Crypto Staking Rates Decrease Over Time? by jamin006(op): 2:04pm On Sep 14, 2022
Staking your cryptocurrency to earn more cryptocurrency or other currency is a good way to earn while 'hodling' onto your cryptocurrency during a bear market.

Cryptocurrency that uses the proof-of-stake (PoS) model has become a more energy-efficient alternative to Bitcoin's original proof-of-work (PoW) model, so as you lock up part or all of your crypto to earn staking rewards, supply decreases over time, which is also directly proportional to the decrease in rewards over time.

An exchange takes a different approach to staking rewards. You stake their native token to earn other tokens when they are listed. Tokens such as SHIB, Floki, Matic, ADA, and others have been airdropped to their users so far.

As a result, it can be agreed that the supply of this [url=qdx.quidax.com]exchange token[/url] can only be reduced through the burning mechanism, and not necessarily through staking.
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