How is this possible?
In this publication we will explain in a simple way how CREA Energy (CGY) owners receive daily rewards or “interest” for the simple fact of having the tokens.
The CREA network issues daily tokens that are distributed in different proportions: 15% Witness nodes, 70% authors & curators and finally 15% to the owners (holders) of the CGY token as described in the following scheme.
As you can see the proportion of 15% allocated to CGY owners is quite generous.
Taking into account that the CREA blockchain issues approximately 1340000 CREA per year, about 201K CGY will be distributed proportionally among all CGY owners.
To calculate the % interest that you will receive for your CGY, you can make a very simple formula.
There are currently 4770000 CGY tokens (source: creascan.net). If you have 5000 CGY it means that you have 0.1% of the total CGY present at the moment. 0.1% of the 201 K CGY are 201 CGY. Then if someone keeps 5000 CGY for 1 whole year at the end of the year, he would have 5201 CGY.
These figures are approximate since the formula is subject to the total percentage of CGY that a user has. This percentage may vary as other users energize more CREA.
There are a series of formulas programmed in the CREA blockchain that allow this “magic”, but this is not a publication to explain in detail the algorithm that makes this possible.
This functionality of the CREA blockchain can go unnoticed since users do not receive a transaction with this reward on a daily basis. But you can see this effect if you check the wallet of a user with a lot of CGY where you will see how their decimals increase as you refresh the page for example: https://creary.net/@creary/wallet
If you had not yet decided to energize your CREA this may be the definitive reason.
Links of interest: