rsTAO
What is rsWTAO?
rsTAO serves as a rebasing utility token with transferability, embodying an equity interest in the aggregate WTAO staked via the protocol, which encompasses both user-contributed funds and accrued staking rewards. As rsTAO is subject to daily rebasing, it dynamically adjusts to represent a user's proportional interest based on the daily allocation.
How much would I earn with $rsTAO?
In turn, those who are willing to stake their $TAO on Bittensor network should look forward to having a good Annual Percentage Yield (APY) of 17.85%. However, we must take into account that there is 10% fee at protocol level on this network. As stated before the effective net APY return our investors commonly view after taking out this fee will be about 15%. Even at this adjusted figure, it remains a significant return on investment demonstrating the profitability of staking within the Bittensor ecosystem.
There are a lot of benefits anticipated for holders of $rsTAO tokens not only from the utility and governance aspects but also through potential increase in the value of $WTAO itself. In order to become a scarcer asset over time, like the well-known cryptocurrency, Bitcoin, $WTAO has been deliberately engineered with “halving events.” These events entail controlled reduction in the production rate of new $WTAO coins being created and released into circulation that cuts supply by half at fixed intervals. This is done to curb inflation as well as to imitate the scarcity-induced appreciation witnessed with precious metals including gold. It is expected that as less $WTAO gets available alongside growing demand its intrinsic value will grow leading to increased capital gains for investors holding $rsTAO.
Last updated
