What is icon's inflation rate and staker's expected return?

General Discussion
1

Curious about

  • inflation rate
  • staker’s expected return

Thank you.

1 Like
2

Rewards are currently 13.71% but go down as more people vote and up as less people vote
https://tracker.icon.foundation/governance

Inflation Rate is not tracked online anywhere afaik, but I made this model which I recently updated with approximate stats. You can make a copy of this and keep for yourself if you want to update. It’s just under 6% currently, but also all tx fees are burned so it’s slightly lower than that.
https://docs.google.com/spreadsheets/d/1Alce6-xAEaA5Zrevg01u0GHym9AIR9KRStaZYvIZdOU/edit?usp=sharing

3

Thank you for the answer. :slight_smile:

So rewards changes when there are more people vote. I read somewhere that rewards are changed if there are higher percentage of tokens staked? is that correct?

If inflation rate is 6%, how could the reward rate to be 13.71%? Where does the extra tokens coming from if it is not from the inflation? Thank you.

1 Like
4

No problem!

Yes, as more people vote, the voting reward goes down. The lowest it can go is 6%, and that will be when 70% of all ICX is voting.

As for your second question, think about it this way: Imagine there are 100 total ICX coins, and imagine only 50 of them voted and the reward is 10%. That means only 50 coins are earning 10%, so the network only needs to create 5 new coins (50 coins x 10%). With 5 new coins (and originally 100 total), that’s an inflation rate of 5% but reward rate of 10%. This same concept applies with ICX.

5

To further expand upon what Benny said;

Exchanges, ICON, and some trader whales hold large ICX wallets. They effectively bare the cost of inflation for those of us that are staking.