How much can you really earn from staking?

If RFC 0011 gets accepted, PoS inflation will become fixed at 1% per year. For example, the current supply is 25,542,791 PPC. If PoS inflation becomes fixed at 1%, that would be around 255k new coins printed for the year through PoS. Minters would then share in this 1%. This allows the minting reward to become dynamic, which complements our dynamic PoW reward. If there are few people minting, those people will collect the majority of that PoS inflation, meaning it’s possible to earn more than 1%. If there are more people minting, then the minting reward will drop. This allows for the network to adapt to changing security conditions. If there are not enough people minting then the network will raise the reward and make it more profitable to attract minters, which increases security. If however there is an overabundance of minters, the reward will be automatically readjusted downward, since the network won’t have to work as hard to attract security providers.

1 Like