hey guys what going to happen are whe just go like now staking and getting rewards after each epoch or somethings else??how long this staking gone last forever??? reward bank must dry up after sometime what then???
thanks
cheers
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Hey @Salem
Rewards
The expansion and future improvement of the Cardano blockchain will be greatly influenced by its community, who need to be incentivized through rewards to participate in Cardano’s development.
Staking rewards for delegators and stake pool operators come from two sources:
- Transaction fees - fees from every transaction from all blocks produced during every epoch go into a virtual ‘pot’. A fixed percentage (ρ) of the remaining ada reserves is added to that pot.
- Monetary expansion - a certain percentage (τ) of the pot is sent to the treasury, and the rest is used as epoch rewards.
This system is designed to ensure that the portion of rewards taken from the reserves is high at the beginning, when transaction numbers are still relatively low. This incentivizes early adopters to move quickly to benefit from high initial rewards. Over time, and as the number of transactions increases, additional fees will compensate for smaller reserves.
This mechanism also ensures that available rewards are predictable and do not vary dramatically. Instead, rewards change gradually. The fixed percentage taken from remaining reserves every epoch guarantees a smooth exponential decline.
If you would like to know more, read here : Cardano monetary policy — Cardano Documentation 1.0.0 documentation
Cheers
Fabian
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aha fabian such a nice info thanks for that friend i keep leaning more and more what great eco system cardano has man love this forum 2
cheers fabian once more thanks u
ada no 1
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