@Dusk is advertising 27% staking APR. The math behind it made me want to slow down.
Saw the number on their own account: over 30% of $DUSK supply staked, earning around 27% APR. Sounds great on its own. Then I checked what's actually funding that reward.
The whole staking reward pool is fixed. 500 million DUSK, total, spread out over 36 years, cut in half every four years by design. Thats it. Thats the entire well everyones rewards come from, forever shrinking on a schedule that was set in advance.
So here is the thing nobody says out loud next to that 27% figure. Its not a fixed rate. Its whatever is left in a shrinking pool, split across however many people happen to be staking at that moment. More stakers join, same pool, smaller slice each. Four years pass, the emission halves, smaller pool too. The 27% today is not a promise about tomorrow, its a snapshot of right now.
I dont think thats dishonest exactly, this is how most staking systems work once you look under the hood. I just think leading with a big APR number, without the decay curve sitting right next to it, sets people up to expect something thats mathematically built to shrink. #dusk
Saw the number on their own account: over 30% of $DUSK supply staked, earning around 27% APR. Sounds great on its own. Then I checked what's actually funding that reward.
The whole staking reward pool is fixed. 500 million DUSK, total, spread out over 36 years, cut in half every four years by design. Thats it. Thats the entire well everyones rewards come from, forever shrinking on a schedule that was set in advance.
So here is the thing nobody says out loud next to that 27% figure. Its not a fixed rate. Its whatever is left in a shrinking pool, split across however many people happen to be staking at that moment. More stakers join, same pool, smaller slice each. Four years pass, the emission halves, smaller pool too. The 27% today is not a promise about tomorrow, its a snapshot of right now.
I dont think thats dishonest exactly, this is how most staking systems work once you look under the hood. I just think leading with a big APR number, without the decay curve sitting right next to it, sets people up to expect something thats mathematically built to shrink. #dusk
