Why are Telos REX staking rewards so high?
Why Telos REX Rewards are unique
If you still have questions or prefer to get help directly from an agent, please submit a request.
We’ll get back to you as soon as possible.
You may know that there’s some blockchain tokens that pay staking rewards – you lock up your token by staking and get paid a yield on what you’ve locked up. These are generally proof-of-stake tokens or masternode coins. But Telos is offering a higer staking reward than almost any other cryptocurrency out there (The exact return depends on how many people participate in Telos REX staking).
Telos REX rewards are unique because Telos is a 0% inflation chain, so your rewards are more valuable. Telos is also easy to stake, so you can just stake-it-and-forget-it. Finally, Telos is much more than just staking. As a 3rd generation blockchain, Telos has fast transactions, no gas fees, high scalability, and its very own governance and decentralized file storage.
Telos has no inflation
Telos is now a zero-inflation chain. Just about every chain that has staking rewards gets them by inflating the money supply so you don’t really get ahead. If you get a 5% stake in reward but there’s 6% inflation you’re actually falling behind. Telos will have no inflation, so the staking rewards are real.
Telos is easy to stake
You don’t have to run a masternode or telos wallet or anything else to get Telos staking rewards.
Telos has a real purpose beyond just staking rewards.
Telos is a 3rd generation blockchain
Most crypto projects with staking rewards don’t have much else going on - they’re trying to be a currency and until they succeed in that the coin actually doesn’t have much real value. Everyone’s just in it for the staking rewards.
But Telos is one of the most advanced blockchains in the world. It runs smart contracts with half second block times and no gas fees. It has the second highest record for the most transactions per day on Blocktivity and has some of the most advanced governance of any blockchain project.
Telos also has a full toolkit for letting any dApp take all of these voting and governance tools for their own projects. It also has it’s very own blockchain-controlled storage system that almost every dApp needs and almost no chain but Telos has.
A lot of exciting web 3.0 projects are starting to deploy on Telos because all these advantages. And that gives Telos real valuable beyond just staking.
How is it possible?
When Telos was launched it set aside funds on the exchange token reserve to distribute to EOS genesis holders whose tokens were held on exchanges, but most these tokens haven’t ever been claimed. So Telos had an on-chain vote where the users said to distribute those funds via REX. This ended inflation and made user economics even more attractive.
By the way, this vote was 100% smart contract controlled. This is part of what puts Telos at the forefront of blockchain development.
* Content adapted form a video posted by Goodblock on 24 Sept 2019.