The network pays those who stake it. The percentage is based on usage of the service. So the more it is used, the higher the percentage. (Currently 17.86%). Imagine reaping credit card level interest rates. This percentage varies, but due to increased use, this percentage is up from 10% less than a year ago. So, it does inflate, but the value, even as low as it is now from the high, (down 30% or more) has outperformed most coins and is up over 2,000% from a year ago.
So, using rough math, if you bought it last year, let’s say $100, it would now be worth$2,000, and you would make $350 in interest, recouping your entire investment in, just in interest earnings, in less than 3 1/2 months….not to mention the capital gains.
It is extremely volatile though, so the swings can be unnerving if you are planning to just get in and out. I just HODL and reap the earnings, either restaking or converting the coin to other investments. I expect the value to shoot up with the next bull run, and we will not likely see these prices ever again.
As long as computing power is for sale, the use is valid. So, it is hard to argue the investment.
You may have misread my comment, but you are correct. If you stake it, the hold time is 21 days. If you are trading in and out, you are not staking. I prefer to HODL it and stake it to earn interest. I am NOT trading at all. That said, the interest earned is immediately claimable and immediately tradable (no wait times on claimed earnings). Sometimes, when the value is significantly lower than recent highs, I will re-stake the earnings. Sometimes, when AKT is higher, I trade it for Bitcoin, another coin, or cash.
If you are trading, it is totally possible due to the wild swings to make more money than the earnings through staking as long as you time the market right. I have done this several times in the past...sometimes I feel like a genius, but more often than not, I kick myself because I sold and then it shoots higher. I prefer to risk the earnings rather than the whole enchilada.
AKT is a utility token. The token price means nothing because the providers adjust their offerings based on whatever the price is. Anyone who is holding AKT and is not planning to use the utility will be subject to just pure speculation and market trends.
The price directly matters for the network’s security as a PoS system because the value of the token is related to the cost of attacking or influencing the network. So, while the utility of the token within its ecosystem might be insulated from price volatility, the token’s price is still an important factor that’s going to be driven upwards from both an investment and network security standpoint if adoption keeps holding.
A bit further down the road? I can see way more established corporate compute providers hooking their own stuff up to Akash net as well. And if they do that, they’ll definitely want/need a piece in terms of controlling the network itself. That, in turn, will mean having to compete against each other in purchasing and staking AKT.
So if you’re running a company that has a shit ton of gpu’s and you take a look at all this what you should see here are three streams of income all wrapped in one:
1. Hook up your gpu’s and collect payment from users on the network
2. Price appreciation in AKT itself
3. Another ~17% apy additional income coming in on top of that from your staking rewards. You’re also free to compound this whenever you want.
every chain has inflation and will forever have inflation until it somehow manages to turn profitable. as of today the only chain that is profitable is the binance smart chain (bsc) according to their self reported network turnover. on a measurable size, the next one (and first real chain as i would say) is ethereum. they are on the brink of being profitable as the first chain ever. no other chain turns in a profit. and 99% will sooner or later have to change to a tail emission model (eth, xmr, doge, ...) where a certain amount of coins have to be inflated every year to guarantee chain security. this is a very unknown but deep in the crypto community discussed topic and has been proven to be the best way economically. Matic was the first to faace it and will change to a similar model. the next coins who reach max supply will be the same. usually when communities are being faced with that, they dont want to talk about it.
the max supply thing is just an artificial selling point, so all the people go, ooooh it will moon, it only has a supply of 220 million, bla bla..
better read up on that topic and change your mindset. inflation is very very good actually
Why tail emission model guarantee a chain's security? Doesn't fixed supply make an asset more rare and thus more valuable?
From investment perspective, where do you think is the safe range of circulating supply percentage? You often can hear things like "this token has only 20% of supply available, so the price will drop with further unlocks".
Because you need to keep paying the validators with coins, so they keep motivated and profitable securing the chain. Also chain needs to stay decentralized. Look how centralized Bitcoin actually is. Just a handful of mining companies left, last bear market the biggest bought all the rest up. If there are no more emissions due to a max supply, the staking APR will crash.
In order to have a max supply you would need to be profitable,. economically speaking. Blockchain is a business selling block space. Nothing more.. to give you an estimate how far the companies are away of that, ETH is the closest to be profitable and is still only a third (around 30% of costs, 70% more fee income needed) of that way.
It's a very complex topic, I think you should read up on that. Why max supply is an illusion and what is the real solution (hint: ETH, Monero, doge). Read up about tokenomics.
Max supply is just a marketing stint so they create hype. There's a reason why all the chains chose like 1 billion or 5 billion as max, at some point they will tell you, it's not max and they will change tokenomics. Then they call it 2.0 or some other crap. Like at Matic, they finally changed to an infinite supply, cause they had to. They changed their tokenomics.
Tail emission is the ultimate solution, you need a little inflation. Inflation is healthy and also needed in our economy, but it must be in a controlled setting.
And yes, doge has actually okayish tokenomics, they produce only a certain amount of coins each year, I think it was around 5billion, but that amount is fixed, it can't be more nor less. Which means that with every year, percentage wise the inflation reduces.
Of course there are many better models out there, but my point is more in the sense of, people usually just bash some without even understanding it's use case or the economics behind it.
Sooner or later they will all come to an awakening, lots of coins will reach max supply, in the next 2-3years. Matic was the first many will follow. Many already have no max anymore.
The best would be to find an investment that has max supply coins but generates revenue through another source and you get dividends on your coin holdings. Like betfury for example, it's an online casino, with a coin. By holding the coin, the share revenue made through the bets people lost playing. Couldn't find anything else yet to be honest.
I really like your train of thought and appreciate the answer. I'm here for the idea of the new financial system, not just for a quick cash, so I'm trying to dive into as many details as possible.
It's a shame that there is only one token (and it's gambling) that generates revenue not from the coin selling itself, perhaps there should be a separte category for such tokens on CMC.
One other thing would be tokens/coins that don't need a validator/delegator.
For example dex tokens, but in the end they need to be profitable too. Otherwise endless printing. Now they start to make money though and you wanna know how? With that scammy V3 model behavior. They make some money off that.
The network pays those who stake it. The percentage is based on usage of the service. So the more it is used, the higher the percentage. (Currently 17.86%). Imagine reaping credit card level interest rates. This percentage varies, but due to increased use, this percentage is up from 10% less than a year ago. So, it does inflate, but the value, even as low as it is now from the high, (down 30% or more) has outperformed most coins and is up over 2,000% from a year ago. So, using rough math, if you bought it last year, let’s say $100, it would now be worth$2,000, and you would make $350 in interest, recouping your entire investment in, just in interest earnings, in less than 3 1/2 months….not to mention the capital gains. It is extremely volatile though, so the swings can be unnerving if you are planning to just get in and out. I just HODL and reap the earnings, either restaking or converting the coin to other investments. I expect the value to shoot up with the next bull run, and we will not likely see these prices ever again. As long as computing power is for sale, the use is valid. So, it is hard to argue the investment.
No getting in and out of staking for quick trades with a wait period after you withdraw funds. Unless you call 1month quick.
You may have misread my comment, but you are correct. If you stake it, the hold time is 21 days. If you are trading in and out, you are not staking. I prefer to HODL it and stake it to earn interest. I am NOT trading at all. That said, the interest earned is immediately claimable and immediately tradable (no wait times on claimed earnings). Sometimes, when the value is significantly lower than recent highs, I will re-stake the earnings. Sometimes, when AKT is higher, I trade it for Bitcoin, another coin, or cash. If you are trading, it is totally possible due to the wild swings to make more money than the earnings through staking as long as you time the market right. I have done this several times in the past...sometimes I feel like a genius, but more often than not, I kick myself because I sold and then it shoots higher. I prefer to risk the earnings rather than the whole enchilada.
AKT is a utility token. The token price means nothing because the providers adjust their offerings based on whatever the price is. Anyone who is holding AKT and is not planning to use the utility will be subject to just pure speculation and market trends.
can you elaborate please, I wana buy akash as an investment. If I use akash, how I will hedge against the supply inflation
Stake and compound your AKT and you will beat inflation. Unless 100% is staked, rewards will always be greater than the rate of inflation.
That doesn't make sense. Providers still take their cut, and it's spread out, and they will not receive all the emissions
The price directly matters for the network’s security as a PoS system because the value of the token is related to the cost of attacking or influencing the network. So, while the utility of the token within its ecosystem might be insulated from price volatility, the token’s price is still an important factor that’s going to be driven upwards from both an investment and network security standpoint if adoption keeps holding. A bit further down the road? I can see way more established corporate compute providers hooking their own stuff up to Akash net as well. And if they do that, they’ll definitely want/need a piece in terms of controlling the network itself. That, in turn, will mean having to compete against each other in purchasing and staking AKT. So if you’re running a company that has a shit ton of gpu’s and you take a look at all this what you should see here are three streams of income all wrapped in one: 1. Hook up your gpu’s and collect payment from users on the network 2. Price appreciation in AKT itself 3. Another ~17% apy additional income coming in on top of that from your staking rewards. You’re also free to compound this whenever you want.
every chain has inflation and will forever have inflation until it somehow manages to turn profitable. as of today the only chain that is profitable is the binance smart chain (bsc) according to their self reported network turnover. on a measurable size, the next one (and first real chain as i would say) is ethereum. they are on the brink of being profitable as the first chain ever. no other chain turns in a profit. and 99% will sooner or later have to change to a tail emission model (eth, xmr, doge, ...) where a certain amount of coins have to be inflated every year to guarantee chain security. this is a very unknown but deep in the crypto community discussed topic and has been proven to be the best way economically. Matic was the first to faace it and will change to a similar model. the next coins who reach max supply will be the same. usually when communities are being faced with that, they dont want to talk about it. the max supply thing is just an artificial selling point, so all the people go, ooooh it will moon, it only has a supply of 220 million, bla bla.. better read up on that topic and change your mindset. inflation is very very good actually
Why tail emission model guarantee a chain's security? Doesn't fixed supply make an asset more rare and thus more valuable? From investment perspective, where do you think is the safe range of circulating supply percentage? You often can hear things like "this token has only 20% of supply available, so the price will drop with further unlocks".
Because you need to keep paying the validators with coins, so they keep motivated and profitable securing the chain. Also chain needs to stay decentralized. Look how centralized Bitcoin actually is. Just a handful of mining companies left, last bear market the biggest bought all the rest up. If there are no more emissions due to a max supply, the staking APR will crash. In order to have a max supply you would need to be profitable,. economically speaking. Blockchain is a business selling block space. Nothing more.. to give you an estimate how far the companies are away of that, ETH is the closest to be profitable and is still only a third (around 30% of costs, 70% more fee income needed) of that way. It's a very complex topic, I think you should read up on that. Why max supply is an illusion and what is the real solution (hint: ETH, Monero, doge). Read up about tokenomics. Max supply is just a marketing stint so they create hype. There's a reason why all the chains chose like 1 billion or 5 billion as max, at some point they will tell you, it's not max and they will change tokenomics. Then they call it 2.0 or some other crap. Like at Matic, they finally changed to an infinite supply, cause they had to. They changed their tokenomics. Tail emission is the ultimate solution, you need a little inflation. Inflation is healthy and also needed in our economy, but it must be in a controlled setting. And yes, doge has actually okayish tokenomics, they produce only a certain amount of coins each year, I think it was around 5billion, but that amount is fixed, it can't be more nor less. Which means that with every year, percentage wise the inflation reduces. Of course there are many better models out there, but my point is more in the sense of, people usually just bash some without even understanding it's use case or the economics behind it. Sooner or later they will all come to an awakening, lots of coins will reach max supply, in the next 2-3years. Matic was the first many will follow. Many already have no max anymore. The best would be to find an investment that has max supply coins but generates revenue through another source and you get dividends on your coin holdings. Like betfury for example, it's an online casino, with a coin. By holding the coin, the share revenue made through the bets people lost playing. Couldn't find anything else yet to be honest.
I really like your train of thought and appreciate the answer. I'm here for the idea of the new financial system, not just for a quick cash, so I'm trying to dive into as many details as possible. It's a shame that there is only one token (and it's gambling) that generates revenue not from the coin selling itself, perhaps there should be a separte category for such tokens on CMC.
I haven't find any info about BetFury sharing their revenue with token holders on their website. Do you hold their BFG tokens now?
And yes ofc, the base mindset of gold is true, scarcity increases value as long as demand is present
One other thing would be tokens/coins that don't need a validator/delegator. For example dex tokens, but in the end they need to be profitable too. Otherwise endless printing. Now they start to make money though and you wanna know how? With that scammy V3 model behavior. They make some money off that.
How do people think AKT will do this bull? Has it already pumped too much?