🚀APR and fees on Taraxa

Understanding what you'll earn

APY, which stands for Annual Percentage Yield, in the context of a Delegated Proof of Stake (DPoS) validator on Taraxa, refers to the annual rate of return that delegators can expect to earn from staking their tokens with a specific validator. This yield is expressed as a percentage and takes into account the compounding of staking rewards over a year.

APR, in the context of Lara, provides only the current estimation of the rewards without any upfront forecasts.

User's APR (Lara staking APR) = Protocol APR * (1 - Protocol fee)

Protocol fee

Lara is projected to apply a 5% fee on staking rewards that directly go into the DAO Treasury. The fee can be changed by the DAO pending a successful vote and we're more than sure will change until the launch of the protocol. We will regularly conduct DAO votes to not only allocate the DAO tokens but also part of the treasury to be used to further develop the protocol.