FloorDAO: FLOOR Tokens
From the chart above, we can see that the amount of transactions for staking and unstaking is decreasing as time goes by for the past 3 months. Both trends is relatively similar. On the 4th of April, it was started with 33 transactions of staking and unstaking each. Its rises to an all-time high on the 16th of April with 86 staking transactions and 59 unstaking transactions. From there onwards, it dropped significantly and on the 3rd of July, we could only see 6 staking transactions and 7 unstaking transactions.
If we look at another perspective, the staking and unstaking volume, we could see another trend forming. Whenever there is a spike or dip, both data will show a similar trend. From the chart above, we can see that in the first half of the data, there is a high volume of staking and unstaking. As for the second half of the data, the volume decreases. This shows that there are lesser people interacting with FLOOR tokens compare to 2 months back.
From the chart above, we can see that the swap amount decrease as time goes by. The all-time high of swap amount is on the 16th of April with 90 swaps. That is the highest for the past 3 months and on the 3rd of July, we could only see 6 swaps. The swapping transactions dropped significantly. The trend of swap volume per day is the total opposite of the swap amount per day. From the data shown above, we could see that the first half of the data has a higher swap volume compared to the second half of the data, and the spikes in the line are lesser too.
A holder’s address has been chosen to be our data to be analyzed. So the question is whether rebase rewards received from staking FLOOR are enough to incentivize users? From the data above, a holder has staked a total of 875 FLOOR on the 2nd of July, 2 pm, and received a total of 875 FLOOR after unstaking on the 4th of July, 1:53 pm. From this data alone we could see that as a fellow holder, the rebase reward is very small to the point where it won’t satisfy anyone.
If we take both the price of FLOOR for the past 3 months and the rewards yield of each epoch (8 hours), we could probably do the math. As of the 3rd of July, the price per FLOOR token is $2.98. Let’s take a 0.14% reward yield for each epoch.
- In 24 hours there will be 3 epochs.
- Let’s use the compounding interest formula to calculate the yield for 90 days.
A = P(1+(r/n))^nt
- The formula for compound interest is A = P(1 + r/n)^nt, where P is the principal balance, r is the interest rate, n is the number of times interest is compounded per time period and t is the number of time periods.
- Let’s say we have only 100 FLOOR token
100(1+(0.0014/3))^(90*3) = 113.42488 FLOOR
- After staking for 90 days and taking 0.14% as the average rewards yield for each epoch, we are able to acquire 13.42488 FLOOR as a staking reward.
- Before staking, we have 100 FLOOR tokens, which are equivalent to 3262 USD as of the 4th of April. As of the 3rd of July, we have 113.42488 FLOOR tokens, which are equivalent to 338 USD.
Please correct me if I’m wrong, but I would say staking it would not be a good choice of investment. Staking for the long term is definitely a bad move, we won’t be able to prepare for the sudden price action. The unrealized loss is approximately 2924 USD. Of course, the token might rise in price in the future, but that is not something that would definitely happen.