TRUF Staking Program July Update: Growing Participation and Rewards

Stefan Rust, CEO

Truflation's TRUF token staking program has seen significant growth and engagement since its launch. 

The Truflation protocol implemented a staking system that rewards participants for securing the network and contributing to its governance. Here's an overview of the current staking situation and its evolution:

Staking Rewards and Participation

• In the first month, 273 stakers participated, with an average stake of 50,000 TRUF tokens each.
• The total staked amount at the end of Month One reached 13,825,000 TRUF tokens, earning an average 60% APY.

Staking Mechanism

• Stakers receive vote-escrow TRUF (veTRUF) tokens based on the amount staked and the duration of the stake.
• Rewards are distributed proportionally based on each user's share of the total veTRUF pool.
• The veTRUF calculation formula is:  veTRUF = TRUF amount * duration / MAX_DURATION  where MAX_DURATION is set to 365 * 3 * 86400 seconds (approximately 3 years) or 93,312,000 seconds

Impact on APY

As more users stake and more veTRUF tokens are minted, the distribution of TRUF rewards becomes more spread out. Consequently, the individual Annual Percentage Yield (APY) for each participant decreases.

This staking system encourages long-term commitment to the protocol, as longer staking durations result in more veTRUF tokens and potentially higher rewards. It also aligns with the governance aspect of the TRUF token, allowing stakers to participate in the protocol's decision-making processes.

Growing Participation

Growing participation in Truflation's staking program, as more users stake their tokens for longer periods, not only provides stability to the network but also indicates a strong belief in Truflation's long-term success and potential.

However, as the staking pool expands, individual rewards may become more competitive, potentially leading to a more diverse and engaged community of stakeholders.

For those interested in participating, you can start staking your TRUF tokens at https://governance.truflation.com/staking. As always, it's important to both research and understand the risks and benefits before participating in any staking program.

References:

[1] https://truflation.com/blog/truf-token-powering-permissionless-access-to-financial-data

[2] https://governance.truflation.com/staking

[3] https://coinunited.io/learn/en/truflation-truf-55-0-apy-staking-maximize-your-crypto-earnings-on-coinunited-io

[4] https://www.bitstamp.net/learn/cryptocurrency-guide/what-is-truflation-truf/

[5] https://docs.truefi.io/faq/truefi-protocol/tru-token/stake

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