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.