Lock, Unlock time #
Lock time #
Locked coins time when staking, usually when you are staking on centralized exchanges, you will foreknow when the coins/tokens are locked.
Unlock time #
Users can unstack before the end of the staking process. But they will not get their tokens back immediately, it will take a period. Unlock Time makes the unstake not affect the operation normally of the network. And they have time if the amount of unstake coins is too large.
Inflation rate #
The inflation rate is calculated based on the ratio of new coming-out coins to the amount of coins circulation. Staking in the PoS process, normally rewards are coins of the network. In PoS mechanism staking, the normal rewards are network coins, which increase the number of coins circulating in the market, risking losing profits if users do not calculate carefully. For coins with the PoS mechanism, this inflation rate is always there.
APY, APR #
APR (Annual percentage rate) #
APR is the annual percentage rate, which refers to the percentage of an actual annual return you receive from your investment, NOT including compound interest.
Example:
You stake 10000$ with 20% of APR.
In a year you will receive: 10000 x (1 + 20%) = 12000$
In the 2nd year, it will be 14000$
In the 3rd year, it will be 16000$
Your investment will steadily increase by 20% per year from the initial capital ($10000)
APY (Annual Percentage Yield) #
APY is the annual return rate including compounding. It allows investors to receive interest in their share of the profit, adding their return to the total beginning investment.
Example:
You stake 10000$ with 20% APY, paying 2 times a year.
In the first 6 months, you will receive:
10000 x 0.2/2 = 1000$
For the next 6 months, you additional receive:
11000 x 0.2/2 = 2100$
Therefore after 1 year, you will get 3100$. If according to APR you will receive $ 2000 after 1 year, APY gives you an additional profit of $ 1100. This demonstrates the power of compound interest.
Minimum total users in Staking #
The minimum amount of coin that you could join staking. Depending on the project, those numbers could be different.
Weight (Coin Age and Amount of Coin) #
The higher the Weight value, the larger the number of cryptocurrencies and the longer the time to participate in staking. This increases the chances of gaining transaction processing power and creating new larger blocks. That means the reward you get is higher.