Returns of Ontology (ONT) Staking 2 —  Actual Example and FAQ

By liquidsteel | CryptoCoinChat | 2 weeks ago

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It's been 7 months since Ontology staking started in Oct 2018, when I posted the first article here. Since then, there has been 33 staking rounds and many many payouts of ONG. How has the returns changed since Round 1?

Disclaimer: This is NOT financial advice and should not be taken as such. Not guaranteed to be correct or continue to be correct. Do your own research.

Just for recap: What are the components of the staking returns?

By staking, you earn rewards from:

  • [a] Regular ONG generation (this is the same even if you’re not staking)
  • [b] Fees from basic consumption of the entire chain network system (network fees, storage fees, smart contract fees, and fees from other services)
  • [c] And for the first 3 years, additional ONG from the Ontology Foundation Bonus.

Returns Then and Now

During the first round, my total returns for a full calendar month per stake was 25.63 USD, giving a ROI of 37.3%. 

Now, I have amassed a few stakes and this is the breakdown:

  • [a] + [b]: 6.25 ONG per stake on average
  • [c]: 3 ONG per stake on average

Which means that 1 stake gives 9.25 ONG for 1 calendar month of staking, which includes all components of staking.

With 1 ONT being worth 3.3 ONG at current prices, a single stake of 500 ONT is worth 1654 ONG. This means the ROI for a year has fallen to just 6.71%.

What changed?

More stakers joined (or people increased their stakes). Also, the nodes very recently reduced their distribution to 80%, effectively lowering returns of component [b] and [c] by a large 20%!

What will happen in future?

As experts like to say: "it can either go up, or down, or go sideways". In short, nobody knows. Nodes may change the distribution ratio up or down, and stakers may decrease or increase their stakes. 

Ontology doesn't exist in a vacuum, there are more and more projects moving to PoS and enabling staking models very similar to Ontology's. If you like what you see here, you could increase your stake. If not, you could cancel. Both options have risks. (I had posted articles previously that cover them).

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