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

Contents:

1. Block Rewards

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. Incentive Pendulum

2.1 The Incentive Pendulum inflating LP rewards

3. Conclusion

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

1.2.1 Breakdown by Pool

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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Msc Data Science Science Student, Tsinghua University

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Alex Simpson

Alex Simpson

Msc Data Science Science Student, Tsinghua University

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