Is there possibility compounding dividend to stake amount?
Once Nex is trading on the exchange we will be able to choose Nex as choice of dividend, assuming that feature will be available for security tokens. If not then by trading dividend token/s for Nex and then staking those
Compounding would be a nice feature, it would be good that someone from the team clarify…
I think that when you want to stake NEX received from dividend you have to stake that in a new smart contract.
Would love this compounding feature.
The Power of Compounding on Your Retirement. Albert Einstein once said, “ Compounding is the eighth wonder of the world. He who understands it, earns it. He who doesn’t, pays it.”
This is indeed a good idea. Plus we need staking top up option as well.
You need to take your dividends every month and stake them in a new contract I believe
My common sense says that you can not adjust a smart contract, so you need to restake it yourself.
I remember reading about this some time ago: If you choose to have your dividends compounded, then the matching engine will do it automatically for you. E.g. it will convert all your token dividends to :nex_logo: via the neonexchange. Only thing is it won’t automatically start a new staking process. Unfortunately I can’t find the orignal where this has been discussed.
I bet that if enough stakers want such feature it’ll be build. An auto stake option from dividends on a preset amount of months can’t be that hard to build. It could even be with a max amount, so it stops compounding when reaching a set limit.
As others have said there is no way to alter the smart contract time so you would need to stake those compounds in a separate contract. Probably best to create a new contract say every 3 months or so so that you wouldn’t be creating dozens of contracts you would need to claim each month.
Yes, but if I wait for three months to make a new contract, I will lose the dividend for the three months, on the other hand, if I make a new contract for each dividend, I will have a lot of contracts, which is pretty confusing. What is the minimum amount for the stake?
That’s true. Idk, I think the minimum is 1 but I personally don’t want to have to manage dozens of contracts if I don’t have to.
You’re forgetting the dividends are paid out per week. So if the way for staking isn’t changed and if you’re allowed to stake each week and if your dividends are then enough to reach the minimum amount of staking for each week, you’ll have a maximum of 105 staking contracts (first year 53 contracts + 52 contracts the second year) over a 24 month period. After the 24 month period the contracts are unlocked on a weekly basis and you’ll have to restake the dividends each week again.
This sounds like to much of an hassle and an auto stake/compounding function will probably be build (if it hasn’t been build already), i mean i don’t think the NEX founders will like this as well.
would be cool if there would be an automatic reinvest mode
This woud be so exciting!
Idk how they would do that since once the contract is set it can’t be unlocked. So without making additional contracts like your saying, there’s no way to add to the existing.
Perhaps i wasn’t clear enough; I never spoke about adding to existing contracts.
A staking contract is a staking contract which imo can only be set once, and can’t be changed while it’s locked.
Thus you’ll get a lot of contracts if you compound them each week.
But perhaps with setting a contract you can give in some parameters to auto compound all the dividends for a set period after choosing NEX as dividend payout token.
Yes, but again that doesn’t make sense. Since the staking is a set contract with a set timeframe you can’t compound because in order to compound you would have to add NEX to the already existing contract which would then cause each NEX addition to have different timeframes.
Only way I see this being possible is if they added a setting on the account to withdrawal dividends from all eligible staked contracts on the account at once. You would still have 100+ contracts if you compound each week over the 2 years but instead of withdrawing on every one you could withdrawal on all with one single button. Each contract would then be independent of the other but still allow you to compound under a single account.
Compounding means just interest over interest, it doesn’t matter if this is all in seperate contracts or set through a single contract. The result will be the same.
I know the latter probably won’t be possible, but could perhaps be established by giving a contract enough parameters.
So yes the first time you can withdraw dividends you stake it again for 24 months, and after the second week you get dividends from the first 2 contracts and you stake it all again.
This could be automated, thats the only point i was trying to make clear.