Cudos Staking: Changes to APR
Understandably there is a lot of talk about the changes to the APR on our staking platform, so here are some points that will help to clear things up.
- Staking for new projects can often start very high in the initial months, but quickly scales down on a sloping curve, eventually to around 3–7%
- Cudos have been paying up to 30% APR for close to 6 months as a fixed rate
- So that we do not postpone on-chain staking any further, we are launching with Ethereum staking for our current ERC20 token with a similar APR. The benefits here are moving your stake off of an exchange wallet and on-chain, plus the benefit of Cudos new staking UI.
- For the mainnet, we will transition to CUDOS native coin. In a bid to simplify for our stakers, we will launch with one staking option. This is beneficial to all of our stakers, as you will all receive the same rewards % (proportionate to what you have staked)
- The rewards and bonuses under the previous model were both paid from the same total pot. By removing the bonus, it means the rewards will be higher as the annual pot is still the same size
- We believe these changes, ones implemented following the ongoing testing and development of the Cudos Network, will create a better user experience
To add, the mainnet staking rewards will be announced in due course, the percentage APR will be variable based on launch date (TBC) and amount of circulating supply staked, please keep an eye out for updates.