Have you people ever noticed that some communities' APR (Annual Percentage Rate) keeps changing? Yes, absolutely it is like that. In the Hive ecosystem, there are many such communities that give liquid Hive on a daily basis, but they never fix it.
Similarly, it is also the case with the Holozing project, as you people know, I keep updating about the Holozing project every week and discuss its price and reward structure.
Last week, I told about rewards and delegation APR. You people can see in my previous post that today's delegation APR profit has changed significantly.
But if I talk about today, if any user delegates their HP to Holozing, then they will get a 10.70% APR profit. It has decreased a lot compared to last week.
Last week APR's
The current price of the token is $0.0013, which is a great rate for users who want to buy. The market cap is also relatively small, at $159.53k. Keep in mind that small market caps can increase significantly in this bull run. If more money flows into this token, its price can go up substantially.
The circulation supply is 122.48m, and the total Zing staked is 106.19m. Users who have delegated HP to this project are receiving a 21.82% APR reward in the form of Zing tokens. Similarly, users who hold and stake Zing tokens are receiving a 13.75% APR reward.
A few days ago, its APR was above 20%, but it suddenly dropped.
Similarly, if I tell about Zing staking rewards, then currently, you will get a 6.94% APR from Zing staking, which has decreased a lot compared to last week. The main reason for this is what I will tell in today's post. Remember that the change in APR depends on demand and supply.
To explain this in simple words, when a new product is launched, its price is very low initially. This is to attract as many people as possible to show interest in the product and buy it.
But as soon as the demand for the product increases, its price also keeps increasing, and the product starts becoming scarce in the market. The same case is here. When the demand for a project increases and the supply also increases, the benefits decrease.
For example, the Holozing project received more HP delegations last week compared to today, due to which the APR also decreased.
Now, for example, if users start withdrawing their HP delegations, then the APR will start increasing again. This is because the demand decreases, and to attract users again, a high APR is offered.
The same case is with Zing tokens. Since Zing tokens are printed on a daily basis, it is obvious that its reward benefits will also decrease.
No doubt, with increased demand, its price will start increasing, but other benefits, like APR, will stop. This is the biggest reason why a project's APR changes on a daily basis.
This is my opinion and based on my knowledge. Maybe many people will not agree with me and will point out my mistakes.
I hope you find this post interesting and I hope you will like it. If you like the post, please leave feedback in the comments section so that the next one will be even better. Thank you for sticking with me until the end.
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