Post
Topic
Board Altcoin Discussion
Re: POS earnings
by
articlecity
on 08/09/2020, 16:47:33 UTC
i've been doing a lot of reading about DeFi's lately, but i can't seem to wrap my head around rewards and where do they come from? at first i thought that rewards are given just like in proof of work coins, like btc so basically, if one stake a coin, he'll be getting rewards for helping the network, meaning from the blockrewards and transactions fees.

but i then came across some new coins like Swipe, which i'm confident that it does not generate that much in transaction fees, and yet the rewards are high? the coins in question are: Tezos, matic network, cosmos, swipe and ethereum 2.0.

i would appreciate any explanation. thank you

Personally i am not a fan of staking coins because it causes inflation in the system and mostly these coins have to face massive sellers who are there to take profit.
I think there is no need to lock coins in staking when you can make bigger and better profit by trading, flipping or even by holding.