PulseMafia
  • Overview
    • PulseMafia Intro
    • How does it work?
    • What's the MAFIA Token?
    • Who's the team?
    • What's the "Node Operator Fee?"
    • PulseMafia FAQ
      • What is a Pulsechain Validator?
      • Is this like mining Bitcoin or Ethereum?
      • Can anyone become a Validator?
      • Why create a pool?
      • What can we expect in terms of Validator uptime?
      • Can you mint an Unlimited amount of MAFIA?
      • What determines the price of MAFIA Token?
      • What happens if I lose or someone steals my MAFIA token?
      • Where can I see the current APR to run a Pulsechain Validator?
      • The Validator APR keeps dropping. Is that bad?
      • What other measures are you taking to ensure maximum uptime for the Validators?
      • Will we be able to follow along to see how validators are doing?
      • What is Slashing, and how will you prevent it?
      • When does MAFIA get minted?
      • What's the difference between the Pool Wallet and Validator Wallet?
      • What if I want my PLS back before the pool ends?
      • Will there be more pools launched in the future?
      • What if I want to create my own private pool?
      • Is this decentralized?
      • What computer setup are you using?
      • I want to participate but no idea how to buy PLS. Can you help
      • Can I ask other questions?
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The Validator APR keeps dropping. Is that bad?

PreviousWhere can I see the current APR to run a Pulsechain Validator?NextWhat other measures are you taking to ensure maximum uptime for the Validators?

Last updated 1 year ago

No, it's not bad at all! Keep in mind that we are not receiving rewards from validating, but there's the price of PLS as well that we could benefit from.

When new Pulsechain validators enter, this causes the APR to reduce. However, as these new validators enter, they are effectively locking up PLS in the process (ie taking it off the market for anyone to be able to buy or sell).

If demand for the PLS token stays the same, but the circulating supply decreases (because it's getting tied in to validators), that would put positive price pressure on the PLS token itself.

When Validators exit, this increases the circulating supply in the market, BUT also increases are APR rewards as well.