Where comes the LikeCoin rewards?
It is definitely not talking interests from deposit.
This article reflects the numbers during on January 31, 2022. All parameters can be changed in the future through the governance mechanism, such as Proposal 7.
Delegate LikeCoin and earn rewards, this article explains where the LikeCoin rewards come from. Delegation generates rewards as each delegator helps to validate transactions.
Validator's rewards for recording all transactions is from inflation, currently set up as 7-20% of the 1.8 billion LikeCoin so far, which is issuing 76.5 million-265 million LikeCoin per year.
The inflation amount will be distributed when a block is created in LikeCoin chain, approximately in every 5-6 seconds
2% of the newly minted LikeCoin from inflation will be treated as "Tax" and reserved for the Community Pool. In other words, 98% of LikeCoin from inflation is for validators and stakeholders. Usage of the Community Pool will be determined accordingly to the community's autonomous mechanisms.
If a block is created on every 6 seconds, the number of new blocks created per year are 365*24*60*10 = 5,256,000, therefore the LikeCoin shared to each validators and stakeholders from each block are:
= 10,000,000 LikeCoin x 98% / 5,256,000
= 47.7 LikeCoin
That means 47.7 LikeCoin is minted every 6 seconds for validators and stakeholders to distribute according to their delegation ratio. If the commission rate of a validator is 10%, the LikeCoin given to stakeholders every 6 seconds will be 47.7 x (100%-10%) = 42.93 LIKE.
The above calculation based on the assumption of a new block is created every 6 second, but in fact there are deviations in real life. Adding to the 98% from inflation, 98% transaction fee from each transaction will also be distributed to validators and stakeholders according to their delegation ratio.
Last modified 9mo ago