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What is the Return of Investment that Neblio staking offers?

2018-12-12 | Neblio

What is the Return on Investment for staking Neblio?

Staking your Neblio is very easy and will allow you to start earning rewards that will increase your stack. Staking Neblio gives a very high return compared to most other proof-of-stake currencies. On average, staking Neblio will give a return of about 10% annually.

How is the reward for staking Neblio calculated?

Staking Neblio is a random process. Proof of stake functions like a raffle. Every coin you own that is eligible for staking gives you one ticket. Approximately every two minutes, a ticket is chosen and a block is discovered. The winner of the raffle will receive a staking reward.

For your coins to be eligible for staking, they will need to be in your wallet for at least 24 hours. The chance that your coins will earn a reward increases as they go unused longer. This concept is called coin age. When your coins have been in your wallet for 24 hours, they have one day worth of coin age. When they have been there for 48 hours, they have 2 days worth of coin age. The aggregate of coin age that you possess (coins * their coin age) relative to the total coin age on the network gives you the chance that you will receive a staking reward on the next block. Your total coin age will also decide how much the reward your receive will be (double the coin age will double your reward). The more coin age you have, the quicker you can expect to receive a reward and the higher that reward will be.

Why continuous staking offers better rewards

Although your coin age increases your chance to receive a reward as well as the value of that reward over time, leaving your coins to idle for a long time and only staking them when the chance to receive a reward is high is not the best option. Rather, continuous staking is incentivised because doing so is much more valuable for the security of the network. To achieve this, coin age stops accumulating once your coins have gone idle for 7 days. As such, to maximise your rewards you will want to receive a reward at least once every 7 days. The chance that you will receive a reward and the value of that reward will stop increasing after that time, so keeping your coins idle will be detrimental to your returns. Furthermore, receiving rewards as often as possible will also slightly increase your rewards. Any coins that you earn from staking will automatically be staked as well and will increase the next reward. As such, more frequent rewards will cause a greater compounding effect on those rewards and will increase your returns.

We have developed the OmniStaker as a device that can stake multiple coins simultaneously, continuously and efficiently. By staking continuously and with low operating costs, the OmniStaker allows you to maximise your return on investment for your proof-of-stake cryptocurrencies.