$OPEN Staking Income Analysis
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Users can unstake their $OPEN principal at any time, and either sell it or stake it again.
The staking income is released in equal proportions and can be accelerated using the contribution token $NEC.
When $OPEN is staked as a single currency, the income is issued once every 8 hours based on the block rebase, and the interest is automatically compounded.
For example, if a user stakes 1,000 $OPEN at a rate of 0.3% per 8 hours, the user will receive staking income through automatic compounding.
Long-term $OPEN staking can generate significant returns through compound interest. For instance, if the price of $OPEN rises to $100 (a 20x increase from the opening price of $5), and the user stakes for 1 year, the amount of tokens can increase by 26.6x, resulting in a net profit of 532x.
Even if the $OPEN price falls to $1, the user can still earn a net profit of 5.3x after staking for 1 year. This highlights the power of compound interest on long-term collateral.
However, it's important to note that users who end their stake prematurely will miss out on the potential for higher compound interest income.
The protocol rewards long-term $OPEN stakers, while short-term speculators earn relatively less. In this way, the protocol incentivizes long-term coin pledge users, which can lead to higher coin holdings for core users of the DAO and contribute to the establishment of community consensus.
Overall, $OPEN staking can provide an attractive investment opportunity for long-term investors seeking to earn steady returns through automatic compounding.
