One thing that worries me about Elrond is high staking rewards. Staking gives 25-29% annual returns depending on scenario. This is significantly higher than for other PoS chains, like ~5% for Cardano and 7% target returns for ETH (or even less?). What is the rationale behind high rewards? They will sure lead to inflation and compromise investment attractiveness.
Rationale behind high staking rewards
in Economics
Posted
One thing that worries me about Elrond is high staking rewards. Staking gives 25-29% annual returns depending on scenario. This is significantly higher than for other PoS chains, like ~5% for Cardano and 7% target returns for ETH (or even less?). What is the rationale behind high rewards? They will sure lead to inflation and compromise investment attractiveness.