@seraphinablakefs
The ability for a token to participate in staking and earn yield often influences investor sentiment and network security. If the staking rewards are tied to network performance, validators and delegators are incentivized to maintain high uptime and security. However, excessive reliance on staking yields to attract users can create unsustainable reward structures. It’s important to compare the annual percentage yield (APY) to network revenue growth. If APY is significantly higher than organic revenue generation, the system may depend on inflation, leading to long-term devaluation. Sustainable staking integrates economic incentives with actual network productivity.
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