Hamster Kombat tokens (HK) are built on a proof-of-stake (PoS) consensus algorithm, allowing holders to earn rewards through staking and governance participation. For those looking to grow their HK stash and cash out big, here are some key strategies to maximize your returns.
Staking Rewards
By staking your HK tokens, you can earn a 10% annual reward. Here's a quick breakdown of how the numbers work out:
Initial Tokens (IT): 1000 HK
Staking Duration (SD): 1 year
Staking Reward Rate (SRR): 10%
Using the formula:
Staking Rewards (SR) = IT x SRR x SD = 1000 x 0.10 x 1 = 100 HK
After one year, your new balance is 1100 HK. If you continue staking, compounding will boost your holdings year after year:
Year 1: 1100 HK
Year 2: 1210 HK
Year 3: 1331 HK
Governance Rewards
By participating in governance voting, you can earn additional tokens. The rewards rate is 2%, and if you fully participate, you could earn:
Governance Reward Rate (GRR): 2%
Governance Rewards (GR) = IT x GRR x GP = 1000 x 0.02 x 1 = 20 HK
Now, your balance grows to 1120 HK.
Liquidity Pool (LP) Staking
For those providing liquidity to Hamster Kombat’s decentralized exchange (DEX), there are even more rewards on the table. If you allocate 50% of your holdings (500 HK) to the liquidity pool, you can earn 15% annually:
LP Staking Reward Rate (LSRR): 15%
LP Staking Rewards (LS) = LP Tokens x LSRR = 500 x 0.15 = 75 HK
After staking in the liquidity pool, your new balance jumps to 1195 HK.
What are you waiting for? Start staking and watch your tokens grow!
