Hi all – suddenly occurred to me that I do not actually know how staking of NEX tokens is supposed to work. Do we know this yet? Or is this Yet To Come?
I am sure there will be tutorials or guides once the exchange is released on the 23rd of August, for now there is no concrete information on how to do it since the exchange hasn’t released yet. I am sure it will be a pretty easy process to follow once you have your NEX tokens in your Nash wallet.
It will work through a staking contract. If you will want to stake your NEX tokens you will have to send NEX tokens to the staking contract. The rate of fee share depends on the period you will be staking your tokens with base rate being 25% and up to 75% if you will choose to stake for 2 years. Also, you will be able to choose if you want to receive fee share in the tokens that were traded or in your preffered one.
This picture might help you to understand the staking method better:
Yes I understand that part – what I don’t understand is the actually mechanism used to stake. In EOS, staking is a natural part of how things are done via wallets and whatnot (i,.e. you use Scatter to approve a Ricardian contract to stake tokens initiated by a link on a website) – NEO does not have an analog natural staking facility (so far as I know). Neo wallets do not have a ‘approve Ricardian contract;’ feature – so HOW will the staking occur from a UI standpoint?
Nash has it’s own smart contract for staking which is not part of NEO itself. Here is the link to Github repository of said contract if you want to explore the code.
From user interface stand point I am not sure how will it look as it can be implemented in several ways.
Say that I:
- Stake 1000 NEX for 50% of fees
- There are, say, $10,000 in total fees on Nash (or the equivalent of).
- No one else on earth stakes NEX
Do I receive $5,000 in rewards? I’m unclear how everyone is calculating staking rewards because usually they are derived from a total pool of fees and divided up by total amount of stakers. Since total amount of NEX staked is speculative and only a fraction of NEX will likely be staked, how does staker participation affect the prospective fee reward?
You will receive on the basis that all NEX coins have been staked. Staking contract works off the assumption that 50 million tokens are staked, remaining dividends from un-staked coins goes to the company.
If the volume on the exchange is really high, you will receive a lot of fee reward.
If Nash Pay is Live, and every transaction from Nash Pay, is going through the exchange, you will also a fee reward. With Nash Pay and maybe much more implementations you can get with 1000 NEX staking a lot of fee, with that fee, you can buy new NEX Tokens on the exchange, that NEX tokens you are going to stake again, and again, and again.
No, since all dividend calculations are based on 50 million tokens. So you’ll get 1,000/50,000,000th of the fees multiplied by the selected fee share (50%)
So that means $10,000 * (1,000/50,000,000) * 0.5 = $0.10