The Validator APR keeps dropping. Is that bad?
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Last updated
Last updated
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.
