Staking.yield.Terra.basics

Terra is a blockchain that uses fixed fiat-pegged chains to power global payment systems with price stability. Terra native token, called LUNA, is used to stabilize the price of stable-coins. Terra's main network, Columbus-4, is a public blockchain based on proof of stake. This means that the validity of each confirmation vote depends on the volume of LUNA tokens it has staked as collateral. These tokens can be staked directly by the validators or LUNA holders represent them to the validators. Users who stake the LUNA for a long time are at risk of fluctuations in this asset. That's why LUNA staking rewards are the main incentive for holders who want to have this currency in their portfolio for a long time. The staking yield is introduced as a sum of rewards and airdrops divided to total staked Luna. Therefore, to calculate the staking yield, we should estimate the rewards and airdrops first. After that we should divided the obtained value to amount of staked Luna. Comparing staking yield and Luna price is one of the powerful methods to investigate the participation on Luna staking.

The comprehensive results of the staking yield and Luna price have been sorted in the following table. In this table, the exact value of Luna price, claimed reward, staked Luna and staking yield are represented.

The staking yield and Luna price have been compared in the next figure. As shown in this figure, the quantity of staking yield is maximized when the price reaches the lower level of the region or ready to increase like 31 Dec and 14 Jan.

Eventually, the staking yield of Luna has been enhanced due to the increment of Luna price over the considered time period.

The next graphic contains the comparison of staked Luna and Luna price over the introduced time frame. As can be seen, the quantity of staked Luna has been declined over the period. But, Luna price has been grown in this time period.

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Staking.yield.Terra.basics