$ADAO Staking APR Fluctuates Over Time: Act Fast to Enjoy The Best-Possible Staking Rewards
When we introduced $ADAO Staking in May 2022, the APR was well in excess of 1500% at the time of the launch nominated in $SIGMA tokens. In addition, you also get a boost from AlgoDAO’s Early Stake Booster program.
Over the past few weeks, the staking APR has gradually reduced; it currently stands around 735% and there have been some questions in our community channels about why APR declines. This post provides more insights into how APR works and why it is normal to see some fluctuation in staking APRs in Web3 platforms over time.
What is APR?
The APR refers to an Annual Percentage Rate and it is a way to calculate the accumulated earnings on an initial sum over the course of a year while factoring in compound interest. Simply put, APR tracks how interest is accumulated over time with the additional advantage of compound interest.
Why is the APR on $ADAO staking changing?
The fluctuation in the APR earned from staking $ADAO tokens is a normal part of staking across all Web3 platforms and blockchains. We mentioned at the beginning of the staking program that early participants can expect to enjoy the highest APRs and that we can rationally expect a decrease in APR over time.
However, the main reason for a fluctuation in APRs in the crypto industry is that staking rewards accruable to crypto-assets are subject to the effects of demand and supply. As more users join AlgoDAO, the number of people staking $ADAO tokens increases, and this leads to an increase in staking demand.
The increase in staking demands means that the staking returns are distributed to a larger number of people, which influences the accruable staking gains.
Conversely, in the unlikely event that the demand for $ADAO staking reduces, it is also possible that staking gains will jump because the accruable gains will be going to fewer people.
It is also important to note that staking rewards on AlgoDAO are calculated based on how long your $ADAO tokens have been staked using epoch cycles. Our epoch cycles last 1 month and start by 12:00 PM UTC on the 15th of the month and each epoch has a certain amount of rewards given pro rata. Hence, you can join any time and earn rewards continuously.
We are still in the early days of $ADAO staking
$ADAO Staking rewards are still a great way to put your $ADAO to work. Staking $ADAO is a no-brainer against the backdrop of the current state of the broad crypto industry because it gives you a chance to accumulate more $ADAO without necessarily needing to buy it.
The staking rewards will most likely continue to reduce as AlgoDAO develops and more people join our community. If you are not yet staking ADAO, there is still time for you to get in at the ground floor to earn one of the best staking rewards possible within the Algorand ecosystem.
Check out the $ADAO staking guide
Also, staking $ADAO qualifies you to earn $SIGMA tokens. During the first year of $ADAO staking, as much as 30% of the SIGMA supply will be mined by people staking $ADAO tokens. If you do not quite know what $SIGMA tokens are; the TLDR is that $SIGMA tokens represent an indexed exposure to all the projects incubated by AlgoDAO. Check out our guide to $SIGMA to better understand how SIGMA tokens work.
***
Make sure to stay connected with us across our social media channels so you do not miss out on important updates.
- LinkedIn: https://www.linkedin.com/company/algodao-fi
- Discord: https://discord.gg/algodao
- Telegram group: https://t.me/AlgoDAOCommunity
- Telegram announcements: https://t.me/AlgoDAOAnnouncement
- Twitter: https://twitter.com/AlgoDAO_fi
- Medium: https://medium.com/@AlgoDAO.fi
