If we talk about staking not in form of PoS, but just staking some token A into the protocol and rewarding with A or some xA tokens, what's the economical sense of this? I mean does the protocol manage that initially locked tokens A in order to get some revenue from them or is it just some deflationary politics (less tokens on market -> higher price)?
Thanks for your comment! That depends highly on the specific protocol. For some, it's just a way of making tokens illiquid, taking them out of the circulating supply and thereby driving price up. For others, the tokens are used as a treasury or in some other capital efficient way. Best to dig into the details of each protocol.
Thanks for the article!
If we talk about staking not in form of PoS, but just staking some token A into the protocol and rewarding with A or some xA tokens, what's the economical sense of this? I mean does the protocol manage that initially locked tokens A in order to get some revenue from them or is it just some deflationary politics (less tokens on market -> higher price)?
Thanks for your comment! That depends highly on the specific protocol. For some, it's just a way of making tokens illiquid, taking them out of the circulating supply and thereby driving price up. For others, the tokens are used as a treasury or in some other capital efficient way. Best to dig into the details of each protocol.
Amazing read, thank you! If you can, please make an article on Tokemak :) I’ve been hearing a lot about it lately
Thank you! Will consider it!
Fantastic summary. Informative and very easy to understand.
Thank you Reid!
I learned a lot and enjoyed reading your articles. Thanks to you!
Thank you for reading!