Try Quests to earn cryptoStaking APY
Select a time period (minimum 30 days) and break down staking returns into their component parts. How much of overall staking yield comes from airdrops historically? How do you expect this to change between now and year's end?
How much of overall staking yield comes from airdrops? To answer this question, let's first start how much is at 'staked' here.
Note: Time period for all data queried in this dashboard is from 01-Jun-21 to 30-Sep-21 (3 months)
As shown in the graph above, the amount of LUNA staked over this time period is within range of 10B-14B LUNA. The balance amount grew sharply from 2B in June to more than 10B in September, which in line with the rise in price of LUNA.
The green line in the graph above is the 30d moving average. We can see that daily rewards generated by transaction fees has been rising from around $10k in June to $50k in September.
Assuming that average daily rewards generated is $40k and $10B staked, let's do a simple calculation to see the percentage it contributes to overall staking APR.
APR = ((Daily Rewards * 365 Days) / Total Staked) * 100
- ((40,000 * 365) / 10,000,000,000) * 100 = 0.146%
With this, we can estimate that transaction fees rewards contributes to around 0.146% of total staking rewards.
From the graph above, average rewards from ANC and MIR airdrop is around $200k. Let's apply the same calculation to find out its contribution to staking rewards.
APR = ((Daily Rewards * 365 Days) / Total Staked) * 100
- ((200,000 * 365) / 10,000,000,000) * 100 = 0.73%
When we compare the return APY generated from transaction fees and airdrop, we can see that rewards from airdrops generated around 5 times more than rewards generated from fees. This heavy dependence on airdrops might not be a good thing as ANC or MIR token price might fluctuate and affect staking return APY as well.