A couple of days ago I was very pleased to announce the hard launch of PWR staking rewards at full force.
I clearly underestimated the involvement of some holders, who have not hesitated for a moment to stake their PWRs.
I am very happy to see this kind of involvement with my little project, but at the same time it distorts 'a bit' my initial calculations.
Within hours of my post, ~20K additional PWR have been staked. Bringing the total to ~30K PWR staked.
Remember what I said a couple days ago?
''And yes, is completely expected that the APR for staking will be initially high, but how much PWR is realistically out there available for staking? 10K? 20K PWR maybe? I would be frankly surprised to see +25K PWR staked right off the bat''
Well.
Fuck me; I know you're having fun.
In this case I am being somewhat ambiguous in the title, given that ~48% APR is very good to start with, I am referring to the fact that it has not been like one of those ponzi farms with 78656% APR on day one to rugpull shortly thereafter.
My initial calculations for a 'healthy amount' of staking rewards never counted with this amount of PWR staked that fast.
Of course this has another pseudo-desirable effect:
A few hours ago APR it was above ~40%; but I rushed to allocate a bit of liquidity from the project. I'll add more after writing this post when I get more HIVE which I'm waiting from a few conversions which I had pending.
My point is; with this amount of PWR staked, the APR has dropped considerably to levels that I consider 'cautiously' unattractive.
With 31K PWR staked and 4K in yearly staking rewards; the APR is now down to ~13%
And to be fair, I was already cautious when I first decided the amount 0,5 PWR/hour:
0,5 PWR/hour => 4380 PWR/year which relative to our circulating supply of 110K tokens represents a ~ 4% in added inflation.
For that reason I decided to make a bold move now. I've decided to tweak a bit the numbers (up!).
I will increase the reward ratio by about a ~33% more. Exactly 0,75 PWR/hour (up from 0,5).
EDIT: It's already live.
Now, yes, the numbers are already close to the limit of what I would consider healthy for the project at this time.
im also taking this chance to make a promise with you:
This project parameter or the allocation to the liquidity pool will remain untouched for a minimum term of ~9 months.
Concretely 253 days. Which is the remaining duration of the distribution contract assigned to the SWAP.HIVE-PWR Pool (which is distributing HIVE and PWR daily).
This period ends in September 2025 and a lot of things will happen by then. So let's allow the time to do it's thing.
This is my word.
I don't like to change numbers on the fly because they add unnecessary instability and uncertainty. But in this case so little time has passed that I thought it appropriate. It was now or never.
It's 1 am.
I'm doing a quick liquidity provisioning and going to bed.
Have a great week. And If you're involved in any way with the PWR token. Just thanks. I love ya all.
Enjoy. Life is short.
(But remember voting for my witness):
(100% of witness rewards are reinvested weekly into PWR).
