Staking rewards for life?

the returns on the link are compounded over time
it's not factored into my equations but I believe they should hold some weight as well

I personally think the direct returns from LinkPool aren't going to live up to their holder's expectations, but I can appreciate it as a time and labor saving tool.

By like 2022-2023 do you guys think staking 5k link will be a fortune?

yes

checked

no

Well be honest with us, did you do any real calculation?

If you did you would see it takes you around 46 years to earn your initial investment back.

Attached: Screenshot_20181014-194218~2.png (977x550, 83K)

I threw in 2.5 ETH into the LP ICO. With the current price, I am already up 1000%. So my ROI will be nice, not even factoring in the price increase of LINK.

Not sure if I would buy a lot of LP right now, though. I am pretty sure this thing will go up once LINK main net approaches, but could well dump in between.

Staking ChainLink is dead simple. It is almost as simple as running any MasterNode. Why would ANYONE cut his profit by 25%?

LinkPool is interesting for small bagholders but don't expect the revenue you get by running your own node (you don't even need Link for)

Hope you can provide 100% uptime and useful data, otherwise you won’t get shit. Also it’s NOT simple for normies, they will use LP. And yeah, sure you can run a node without LINK, but who will choose a node that’s not able to provide collateral?

>can provide 100% uptime
AWS guarantees 99,999% uptime. I don't think LinkPool has the same OR they are also hosting on AWS.
>useful data
do you have any idea what you are talking about? You just have to connect different APIs. This is literally done in a few minutes per Api

The reality is that at this point it's really unclear if LP is worthwhile or not. Until we have a clearer idea of how node operation is going to work (and uptime isn't an issue, everyone will be using a VPS anyway) then it's just question marks. Maybe sourcing useful data will be difficult and LP will moon. Maybe it will be straightforward and LP will have very little value. At this stage it's simply unknown. I can understand having a hedge in LP, but I wouldn't buy into it at the currently inflated prices that are relying on FOMO.

how is linkpool high risk high reward? High risk because it needs link to succeed. High reward because ..?

because of the consistent node requests that'll come through it
link succeeding (getting adoption) isn't necessarily an automatic win for holders

LP will guarantee that even if link doesn't increase in price that much
as long as the amount of money flowing through the network is a lot, it should have a corresponding amount of revenue

the multiplier for buying link and using it in the network to calculate the market cap is different to the straight forward computation for discounted cash flows on linkpool shares once we get a grasp of how much traffic the network receives and how much revenue that generates

let me know if I can clarify, I'm a bit drunk atm

no matter how utopian you think the idea of link is, there will always be a set of really huge nodes that will take most of the jobs
linkpool are just the first ones

I bought my share for 4.6 ETH/Share, i think that’s a good price, considering the value of ETH at the time of the Crowdsale. I wouldn’t buy for 7 or 8 ETH either.

Of course you can just connect publicly available API’s and provide nearly 100% uptime with AWS. But it won’t be easy to provide rarer data, that might ultimately result in higher payments. Not gonna say you won’t make good profit with your own node, don’t get me wrong. I’m just saying that LP MIGHT have “better” (rarer) API’s to offer than a single person. I’m pretty sure they are in talks to businesses already. There’s nothing wrong with running your own node though.

there are 4000 shares in total. that's not 0.000628 stake per share, wouldnt that be 0.00025

They only sold 1,000 shares and kept 3,000 for themselves and future employees and partners.

if the 3000 extra are fully functional shares then you just diluted the ownership by 3x

I didn’t do the maths desu, just stating what I remember.

That's correct, NEET nodes meme should be put into perspective

nah it's my bad. 0.000625 takes into account of the 3000 unsold shares.

But still, at 15m links pledged you're looking at a return of ~47 links per share per year, assuming node staking gives you an average return of 5% annually. Considering the average price of 7eth per share, that's about 3200 LINK per LP share.

1.46% annual returns..

It is a very obvious scam
If you are not able to stake yourself go buy tron or xrp, maybe that is morefor you

>link succeeding (getting adoption) isn't necessarily an automatic win for holders
Not only drunk, but also incredibly stupid.

>implying adoption equals singularity
I'd like to clarify
it probably will be tho
idd I'm incredibly stupid
kek

Explain these calculations, because I'd say these are totally wrong, but I'd like to be 100% sure of what you want to say in every column/row.

Your calculations are wrong.
4,000 shares represent 25% of the company revenue.

For every share you hold, you own 0.00625% of their revenue. If 15 millions LINK becomes their revenue you would earn 937 Link per share.

0.00625 / 100 = 0.0000625 * 15,000,000 = 937.5 LINK per share.

no 4000 shares represent 100% of the companies revenue
your calculations are only for staking not anything else they do where they take all the cut

did the calculations
this is right

FOH with this weak fud. First, those calculations are wrong. Second, do the same calculations as if you didn't buy into LinkPool, but bought LINK instead. Calculate your personal rewards at the same ROI. Post the results here so we can laugh at your lack of foresight.

it's correct. Just bought 1.24 shares and am regretting a little. Assuming:
>15m links staked
>5% annual returns

you'll be looking at a return of 47links per share. That's 1.46% annual return if your average buy-in per share is ~3200LINKs or ~7.5ETH.

You need the amount staked to go 4x (5.8% annual returns) or else it's simply not worth the invesment. Bought too much and now i cant sell due to low liquidity FML

Link will moon and increase in price that's true.
Link is going to be adopted, and its network is going to be used, that's true.
But if you think we are going to see $1,000 LINK in the following 6 or 7 years, you are absolutely deluded. In the meanwhile one of the easiest ways to profit from the Chainlink ecosystem is earning profit from the network usage, that be running your own node, having a passive LINK income, or staking in someone else's node.

You are wrong. Shareholders receive income from NaaS subscription payments, the 25% cut fee from the staking dApp and the DEX fees.

staking rewards percentage : assumption of low 0.1, medium 1 and high 3.

15 million staked : found somewhere john said that he already commitment for this amount.

linkpool costs / linkpool ICO rewards : known fact from the ICO

chainlink valuation : my personal valuation that Link will be worth around 1 dollar for the first year.

>Still waiting for

You are correct, we were discussing different situations though. I assumed you were saying 15M link was their revenue.

Nevertheless I highly doubt a link pool with 15,000,000 million LINK staked will only have a 5% return during the first years. Until the node network consolidates, smart contract requester will be willing to pay more for the so-called DaaS (Decentralization as a Service) that LINK provides, especially those first movers pioneers companies that even paying more, will still save several tens of millions a year in middlemen.

As someone said before, betting for LinkPool is betting for network usage rather than price speculation.

lets say staked reward is 750k links @15m links staked. Linkpool fees = 25% of that = 187500 links. There are 4000 shares in total, so shareholders take 25% of revenue = 46875 links. Divide that by 1000 and you get the amount of links per share

Tell me what is staking and how can I do it? I have 20000 link

Attached: b81bf3ce.jpg (240x240, 6K)

node operators provide data feeds like an ebay vendor. Link tokens can be 'staked' into a node and act as the node's reputation score

Staking divides in two parts: The penalty stack and a 0.0X multiplier for reputation.

are you a brainlet? the image explains the calculation.

15.000.000 * 0.001 ( this is 0.1% staking reward)= 15.000 total staking rewards
15.000 * 0,3 = 5.000 linkpool costs
5.000 * 0,25 = 1.250 total for ICO investors

if you own 0.1 % of the Linkpool ICO you get that month 1,25 chainlink.

interesting...
I like your valuation method
check out mine
warosu.org/biz/thread/S11622396

I was looking at
's reply when I checked the numbers

where'd you get the "5% annual returns on node staking"?
I highly doubt it'll be the case before the network will stabilize

>are you a brainlet?
>30%
>he doesn't even know the linkpool costs

I'm begging you. Do calculation for the same rates of return on your own node.

> are you a brainlet?
> 15.000 * 0,3 = 5000
even if you had the correct cost %, you literally can't multiply correctly using excel.

It really depends on how easy sergey makes to set up a note which brings in traffic. I'm being optimistic but I suspect there will be YouTube videos with a full tutorials on how to do it for brainlets. Either way it was worth to buy it with the crowd sale but a gamble if ur buying shares right now

Why are you bringing logic into this?

i saw it, the only difference is yours is EXTREMELY optimistic

at 75m link tokens in staking rewards that imply linkpool has 750m link tokens staked in its network, assuming nodes get 10% yield annually. If that's an error, then the returns will actually be 7.5m per year (10%) or 3.75m (5%). Going with the latter option gives us 275 links per year for each LP share

Why? I just calculated the linkpool ROI.

Yeah maybe it's a better deal then the return of running your own node.

But you also got the downsides of having the risk of competitors of Chainlink, liquidity when selling your shares, loosing it all if there is an exit scam etc.

medium.com/linkpool/linkpool-economics-ac8642a75801

Any Link tokens that our nodes generate as reward, 30% will be deducted for our fee and the remaining 70% will be distributed proportionally between the stakers

And wtf are you rambling about Excel. You ask me about all these questions. I gave you the calculations. If they are wrong PROOF IT.

that isn't based on staking rewards
it's based on amount of links staked and the resulting staking power

So will I be the node operator if I stake? Or I can participate in a node like a shareholder into a company with my Links?

checked
but they changed the 30% to 25% later on

checked

The point of your post was:
>If you did you would see it takes you around 46 years to earn your initial investment back.
But now you say:
>Yeah maybe it's a better deal then the return of running your own node.

So I guess now you're saying Chainlink is a bad 'investment' because no matter what you'll be waiting decades for ROI? All I'm trying to say is that your model is shitty, whether it's applied to LinkPool or Chainlink ROI, so maybe you should rethink using it as LinkPool FUD.

>If they are wrong PROOF IT.
1. open the calculator app
2. type 15000 * .3
3. compare 4500 to 5000
4. observe how they are not the same number

see Look. The space moves fast, so you're not expected to be totally up to date on all the details. Unless of course your going to talk down to people and pretend to speak from a position of knowledge. If you're going to do that, get your shit in order.

Please let the discussion just be about how much you invest in linkpool and how much you can earn with it.

Comparing to nodes we got a shit load of extra variables.

Also you where totally right with 15000 * .3 but it barely influences the calculation.

Why is staking power important? Wouldn't fees be the only thing that matters when calculating yield?

You presented your argument as if 75m is gross revenue instead of staking amount

I'm not talking anyone down, I just get sick of people trying to shill their linkpool shares saying it's the best investment ever. While never providing some calculations about expecting ROI.

sorry about that

imho staking power is important because it's the opportunity cost if you would stake your link anyway

anyway, if someone were to buy a share now at 7.5eth or 3200links, you need the pool to grow to ~60m links for LP shares to have an acceptable yield (~5.8%).

>inb4 returns will be high initially
yeah probably for a year max. Even at 10% staking return that's just an annual yield of ~2.92% per share. It'll only be good if the staking amount increases to 30m in that year.

As time goes on and staking rewards goes lower, you'll need the amount staked to go higher again to sustain the yield. Luckily there's still other services and products that LP has in the pipeline so fingers crossed those are enough to sustain the annual yield at ~5-6%.

think we may be misunderstanding each other a little, what I meant was that your calculations were based on the assumption that 75m is gross revenue, which is unrealistic as that implies there's more than 750m tokens staked in linkpool

no, no, no
the assumption is that 75M is staked (some form of equity) and the calculation is based on the staking power (implied based on the 25%) off of that.

therefore, if we want our annual yield per share to be borderline acceptable from the moment of purchase, it would be 5ETH per share. This will increase the annual yield to roughly 2% at 15m staked tokens. 8% at 60m staked tokens (optimistic scenario)

I could go on but you've already got your tail between your legs, so lets just agree that you won't post that shitty, incorrect FUD again. Deal?

My models show it's a good investment, and I'm not sharing them with someone that can't do basic math.

..still dont get what you mean by the term 'staking power'

75m x (annual yield) x 0.0000625 = link rewards per share. If yield = 0.05 then reward = ~47. Where does staking power come into this?

Answer me something, how much money (USD) do you think it will be moving through the Chainlink network in... let's say 2022?

>inb4 muh crystal ball
I know, but let's just speculate for a moment.

For some reason people tend to forget about fiat and the fact that the fiat value of Chainlink is not static when we discuss the LP revenue.

IF Chainlink is adopted I expect a huge volume -billions of dollars worth of LINK being moved between the node network and requesters- if we add to that, the fact that Jonny stated that his aim is to control at least 10% of the traffic of the network. We are all set for good.

Let's remember someone earned 10,000 BTC mining BTC in 2008 and paid a pizza with it.

Attached: eisberg real value cl.jpg (2040x1888, 965K)

the amount you'd be earning if you were using link to stake instead as opposed to having linkpool shares

I'm not sure if I'm articulating this correctly
let me know if I need to clarify what I mean by this

:/

Speculating on 5% annual staking yield, we get ~160links per year if one were to buy 3220 LINKs with 7.5 eth instead of a share of LP at current prices.

1 share of LP gives 47 links, so that's ~113 links gone or 70% of your potential income in you were to use LP instead of staking yourself. The question now comes down to if the convenience provided by LP is worth the opportunity cost.

> Or I can participate in a node like a shareholder into a company with my Links?
That's what LinkPool is about. You can stake with them as a "shareholder" in exchange for a 25% fee or running your own node.

I sort of fomo'd into a single token. mostly wanted priority staking, but the passive share income is just a little gravy, not expecting much. definitely a gamble, but took it from my trading stack, anyhow so... meh. only time will tell, but I feel pretty comfy.

Attached: Linkpool infographic.png (1377x5000, 1.25M)

you are correct but the point of this exercise is to speculate on the efficiency of LP shares

Dudes, just stop this retarded shit. Nobody knows.

I don't got my tails between my legs.

My main calculations are right, and you got nothing to show for yours.

>They only sold 1,000 shares and kept 3,000 for themselves
HAHAHAHAHA

They couldn't just Jew people out of a massive 30% fee. They also had to Jew their crowdsale investors out of 2/3 profits as well. Fucking kek.

Intelligent discussion - thank you. I totally get where you're coming from. Paying 7.5 times more for a LP share today is where things start to fall apart for me. Doing the same calculations you've done but as if you bought into the crowdsale shows that the ROI is about the same.

A couple other things to consider wrt the opportunity cost is the likely appreciation of the LP shares, and the staking priority they provide. I also suspect that LP will have a higher rate of return on a per transaction basis because they'll have access to higher collateral jobs, and subscription APIs.

Is right though. We won't know until it gets going. I suspect that it's a good idea to hold both LINK to stake, and LP shares.

shhhh this is a nobrainlet discussion now

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They founded the company, do you really believe they would work hard for months without any expected revenue? Furthermore they have to pay for expensive API subscriptions and server maintenance.

Why on earth would you expect a 0.1% monthly staking reward? Thats 1.2% per year (ignoring compound).
A realistic number is somewhere between 5 - 10% per year.
So if LP stakes 15 million Link, they will earn 1.5 million and take their 25% cut, which is 375K Link.
375k divided by all 4000 LP shares gives you 93.75 Link per year per share.
Shareholders also get staking priority, rewards from NaaS and the Dex and whatever else they come up with.
So all in all getting a bit of LP shares is not the worst thing to do.

Personal annue revenue numbers are very comfy, those are probably even lowballing it. LP revenue will be in the billions.

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Stake it till you break it, lend it till you lose it

I have 100k link and not sure I’m going to make it you obviously don’t know how big of a risk you’re taking lol

>7.5 times more
eth was worth way more when people bought desu

WE GET MONEY SO MANY WAYS