sell

Chromia staking cuts risk killing staker incentives

I expected stakers to receive around 15% APR and that any reward-sharing for dApps would be reasonable. In reality the staking reward is only about 3% and proposals to take half of that make staking unattractive to me.

It’s not the stakers’ job to subsidize dApps — that’s the team’s funding and product responsibility. Shifting the burden to validators undermines network security and long-term incentives.

Given this design choice, I don’t see a viable future for Chromia unless governance reverses course and restores meaningful staking rewards or finds alternate funding for dApps.

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Analysis

The proposal to split an already low staking yield effectively halves staker compensation, reducing participation and security. This is a governance/team funding issue, not a staker responsibility, an...

Recommendation

Sell or avoid new positions until the team clarifies funding for dApps and restores competitive staking rewards; monitor governance proposals closely for reversal.

Disclaimer

The Analysis and recommendations provided are for informational purposes only. Any investment decisions should be made at your own risk. Past performance is not indicative of future results. Always conduct your own research and consider consulting with a financial advisor before making any investment decisions.

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