THORChain Data Digest: Block Rewards and the Incentive Pendulum. The Keys to a High Yield.

Contents:

1.1 Summary of System Income since launch of MCCN: Block Rewards and Fees

1.2 How much volume/users do we need to maintain high APYs when Block Rewards fall off?

1.3 Block Rewards as a Cost to the Reserve

1.3.1 Breakdown of Costs to Reserve by Pool

2.1 The Incentive Pendulum inflating LP rewards

1. Block Rewards

1.1 Summary of System Income: Block Rewards and Fees

Figure 1: Block Rewards and Fees Earned (Rune) since launch of MCCN

1.2 How much volume/users does THORChain need to maintain high APYs when block rewards fall off?

1.3 Block Rewards as a Cost to the Reserve

Figure 2: Reserve Income vs Expenditures (Rune) since launch of MCCN

ILP: https://alexsimpson96.medium.com/thorchain-data-digest-impermanent-loss-protection-in-practice-ae7093911567

Fees: https://alexsimpson96.medium.com/thorchain-data-digest-deep-dive-into-fee-revenues-f3cc094f8ccb

Figure 3: Table of Fees generated for Reserve and ILP Payouts by Pool

2.1 The Incentive Pendulum is massively inflating LP rewards

Figure 4: Node and LP earnings when THORChain system is in Efficient State — — — — — — Figure 5: Node and LP earnings on THORChain since launch of MCCN

3. Conclusion

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