ROI, ROI, ROI! The crypto pips are obsessed with this. Staking is also one of the attractive options of crypto. Get some crypto, stake it, and receive daily payments.
Personally, I would like to thing a bit further than the ROI side of things, but a said the crypto community is still about ROI. So, lets take a look how does HIVE stands on the ROI side of things.
HIVE Staking
Hive Power or more accurately VESTS earn it two ways:
- Staking rewards
- Curation rewards
Staking Rewards
15% of the HIVE inflation goes to HP holders.
Current Inflation calculation:
(978 - (head_block_number / 250000)) / 100 = 8.02%
Next calculate the staking rewards:
15% out of 8.02% = 1.203%
Correction for the share of Hive Power:
377,027,954/142,777,834 = 2.65
The correction for the amount of the total power up hive comes from the fact that not all the HIVE is powered up and because of that the once that have powered up are earning more.
According to hiveblocks.com at the moment 377,027,954/142,777,834. Note that these values are dynamic and are changing daily so this ratio will vary and change over time.
1.203%*2.65 = 3.19%
A 3.19% staking rewards!
If the share Hive Power decrease, the staking rewards increase.
IMO these staking rewards are not showed in the best way on the HIVE blockchain. The Hive Power increases slowly based on the HIVE per VESTS ratio that is growing over time. It is hidden and not clearly visible. A daily transaction as a reward for staking will do much better.
Curation Reward
Curation rewards are not fixed and depend on the curation efficiency. They can vary a lot. On average the CR is around 10%, but with very efficient CR this can go more than 15%, and in some cases even more than 20%.
For this case we will take a modest and easily achievable 10%. An investor can delegate their Hive Power to some of the curators like @curangel, @ocdb, @tipu and get an approximate 10%.
Curation Rewards = 10%
When we add both numbers above, we get an average 13% ROI.
3.19% Staking Rewards + 10% Curation Rewards = 13.19%
Note that this is a conservative scenario, usually when delegating Hive Power to curators. My personal CR are around 12% and I’m not an efficient curator. Meaning 15% in total.
If we compare these rewards with some of the other crypto projects that offer staking rewards, the usual numbers are in the range from 5% to 8%. DAI loans on MakerDAO, staking BTC on Crypto.com, Tezos staking, etc.... all of them are in the range between 5% to 8%, and more often close to 5% APR.
You can say that HIVE has a higher inflation, bit still the ratio is in favor of HIVE. Tezos for example has more than 5% inflation and around the same amount of staking rewards. ETH is just above 4% and with MakerDAO you can get just above 5%. BTC is 1.8% and you can get above 5% for it. HIVE is around 8% and you can get more than 13% and, in some cases, more than 20%.
I look at staking rewards as the safer option for earning crypto. Trading can make these numbers look small, but the risk there is much higher. Oh, and yes, with Hive you can also earn crypto with zero stake and zero risk. But that is off the topic here 😊.
All the best
@dalz
Posted Using LeoFinance
To play devil's advocate isn't the high return just because we have a higher inflation rate compared to other cryptos?
Critics might say this is just because we're the the Rusty Android of the crypto world - easy to pick up because so many of them are created, but not actually wanted by anyone.
Maybe we'd be better off if we were more like the Yodin of the crypto world?
That maybe how we see ourselves, but I'm not sure if that's the outside perception - steady downward pressure on the price again now.
I remember I sent 60 Rusty androids to @slobberchops just as a joke a couple of years ago.
Posted Using LeoFinance
I like devil's advocate :)
Actually I did mentioned that on the bottom of the post and the overall answer is no.
The thing with Hive is that the staking and curation rewards are connected and coded with the ratio of the Hive Power. Rewards goes only to the Hive Power. As the share of Hive Power decreases the ones that hold HP get more rewards. We are currently at 37% HP.
Posted Using LeoFinance
I sent them on to @steevc LOL, I don't know what he did with them? Maybe fed them to the cat?
I still have some. Can't remember if I managed to sell any. It's not a card I tend to use.
I think you’re on to something here I don’t know if it’s too complex to pull into a front end but it would be a great pull for passive investing! I think we should also be on apps like atomic wallet where people stake via their wallet
I checked hivestats and I make 9.7% on curation which is pretty good for me! 3% APR on staking and 9.7% curation compound daily sounds like a Ponzi scheme to me lol
I keep saying that staking rewards on Hive are hidden and hard to calculate.... Usually crypto projects are making a huge noise for their staking rewards. That is way this post .... and yea totally agree this should be displayed on some frontend like a prime info ...
And only on Hive we have !BEER ...
Thanks @dalz for the interesting post
BEER iz amazing!
Thanks!
Tweet:
Thank for sharing the insight on this! The economics behind HIVE are pretty neat, I find. Even though the staking rewards aren't as high compared to the double-digits that some other crypto projects are offering, there's so much more that can be earned in the meantime! Not just with staking or investments, but by creating posts, curating content, or even playing games! Every little thing counts...
A truly magical little economy we have running here, and surely a model for other platforms in the future :-)