/biz/ - Business & Finance

(nolinkers stay out plz)

Chainlink staking is coming up and i wanted to give you guys an overview with simple math of what chainlinks price would be, and what the APY of chainlink would be.

in 2020 exactly 1,051,318 LINK were earned by node operators.
when chainlink staking will be live, we could assume that 50% of the earned links will be redistributed to stakers. the chainlink network will obviously grow by end of the year 2021 and with new feeds, ocr, arbitrum, vrf, usage by other blockchains, we could easily get a x10 rewards for the current year compared to 2020.
>so:
1,051,318 LINK * 10 = 10,513,180 LINK total rewards
50% goes to stakers
10,513,180 LINK / 2 = 5,256,590 LINK redistributed to stakers
> now let's assume that 50% of the whole chainlink circulating tokens gets staked
400,509,556 LINK / 2 = 200,254,778 LINK staked
> this means that the yield for 50% of the whole supply being staked and 5M LINK rewards redistributed would be:
5,256,590 LINK / 200,254,778 LINK = 2.62% APY
>but this gets crazier, because now that we assumed that 50% of the whole circ supply is staked, then it leaves 200,254,778 LINK circulating, with a simple math operation, we could also guess what would the price of chainlink be by using the current market cap of chainlink of $6,459,242,397.
$6,459,242,397 / 200,254,778 LINK = 32.25$

with 50% rewards paid back to stakers (5M link), and 50% of the total links staked, you would get
1LINK = 32.25$ with an APY = 2.62%
so let me sum it up to you guys, and extend on the logic, don't forget that i'm calculating all this with 50% of rewards given back to stakers (5M Link), the chainlink network will be bigger and rewards also bigger. The lower the APY of chainlink, the more links are staked, the more links are staked, the higher the price of link is. do you understand what this means? Y0U CANNOT FUCKING LOSE. either the APY is high, or the price is high.

check pic related for different simulations.

(nolinkers stay out plz)

Chainlink staking is coming up and i wanted to give you guys an overview with simple math of what chainlinks price would be, and what the APY of chainlink would be.

in 2020 exactly 1,051,318 LINK were earned by node operators.
when chainlink staking will be live, we could assume that 50% of the earned links will be redistributed to stakers. the chainlink network will obviously grow by end of the year 2021 and with new feeds, ocr, arbitrum, vrf, usage by other blockchains, we could easily get a x10 rewards for the current year compared to 2020.
>so:
1,051,318 LINK * 10 = 10,513,180 LINK total rewards
50% goes to stakers
10,513,180 LINK / 2 = 5,256,590 LINK redistributed to stakers
> now let's assume that 50% of the whole chainlink circulating tokens gets staked
400,509,556 LINK / 2 = 200,254,778 LINK staked
> this means that the yield for 50% of the whole supply being staked and 5M LINK rewards redistributed would be:
5,256,590 LINK / 200,254,778 LINK = 2.62% APY
>but this gets crazier, because now that we assumed that 50% of the whole circ supply is staked, then it leaves 200,254,778 LINK circulating, with a simple math operation, we could also guess what would the price of chainlink be by using the current market cap of chainlink of $6,459,242,397.
$6,459,242,397 / 200,254,778 LINK = 32.25$

with 50% rewards paid back to stakers (5M link), and 50% of the total links staked, you would get
1LINK = 32.25$ with an APY = 2.62%
so let me sum it up to you guys, and extend on the logic, don't forget that i'm calculating all this with 50% of rewards given back to stakers (5M Link), the chainlink network will be bigger and rewards also bigger. The lower the APY of chainlink, the more links are staked, the more links are staked, the higher the price of link is. do you understand what this means? Y0U CANNOT FUCKING LOSE. either the APY is high, or the price is high.

check pic related for different simulations.