With MainNet around the corner, what rewards can we expect from staking?
With the launch of MainNet approaching fast on June 30, it’s time to talk about staking rewards!
We are anticipating very healthy block rewards for staking on MainNet. Network participation is the bedrock of a public blockchain and block rewards are a good way to strengthen the network by incentivizing participation and increasing decentralization.
The easiest way to estimate your potential future staking rewards is to use the Fusion Staking Estimator which pulls directly from Fusion’s block explorer (currently pointing towards PSN 2.0 Block Explorer).
Alternatively if you would like to understand the inputs used in the calculator, here is the equation we use for calculating staking rewards per year:
(Quantity of tokens staked / Quantity of total tokens staked in the network) * 2.5 FSN (Reward per block) * 5,760 (Blocks per day) * 365 (Days in a year)
As an example, let’s suppose that a staking participant has 5,000 FSN tokens and that a total of 8,000,000 FSN tokens are in the staking pool on main network.
We can input these values into the equation:
(5,000 / 8,000,000) * 2.5 FSN * 5,760 * 365
= 3,285 FSN tokens earned per year from staking.
The % rewards for staking per year therefore = (3,285/5,000) * 100 = 65.7%
With those numbers, it’s easy to see that staking rewards on Fusion are relatively high compared to other tokens.
As with many decentralized networks, staking and mining rewards are especially favourable at the early stages of the networks existence. Early adopters have the potential to reap disproportionate rewards whilst the network is small and competition for block validation is relatively low. Don’t miss out!