Many people would argue that proof-of-stake currencies are quickly losing traction. Zilliqa is an example of that not necessarily being the case. Ever since its staking support was launched, the network secured over 2 billion ZIL in staking.
Zilliqa Staking Takes off
It is interesting to see how users are still flocking to proof-of-stake currencies in 2020. Although there are till hundreds of currencies providing this functionality, it seems to have taken a back seat this year. Everyone is busy chasing DeFi pumps, with the risk of getting rug pulled in the process.
For Zilliqa, things are a bit different. It is evident that a lot of users have a keen interest in staking their ZIL coins. So far, over 14.8% of the circulating supply resides in staking addresses. That is over 2.046 billion ZIL, all of which cannot be traded on exchanges or stored in custodial wallet services.
Granted, there is still a large portion of the circulating supply out in the open. At the same time, one wouldn’t expect a staking currency to gain such success during this DeFi craze. One of the reasons for Zilliqa’s success in this department is how the staking seems to yield DeFi-esque rewards as well.
Through the Zillion dApp, users can not only stake ZIL, but earn gZIL in the process. This new token is the governance asset for Zilliqa. A maximum supply of 682,550 gZIL is to be created. During the first year, this process will run, after which no further governance assets will be rewarded to stakers.
As is often the case, one has to wonder if this token will have any value. For now, that doesn’t appear to be the case just yet. Once it begins trading, however, that situation is likely to change.
Relatively Lucrative Earnings
Judging by the current statistics, Zilliqa stakers can expect an APY of just over 33%. This number will continue to fluctuate for some time to come. As more users join the fray, the individual rewards are likely to decrease. Even so, a 33% APY for doing nothing – and not having to worry about DeFi – is not a bad deal either.
Although the ZIL price hasn’t responded too kindly yet, the market is showing signs of recovery. Today’s 6% gain negates half of the losses sustained in the past 7 days. It may very well come down to whether gZIL will ever be worth something. If this governance token has value, the price of ZIL is likely to respond in kind.
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