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What are those 5 % APR?

Admin shared this question 2 years ago

What are those 5% APR?

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JL777 writes:

The way it works is most efficient possible and has zero blockchain impact. The usual staking requires one or even two transactions per staking, usually for a fraction of a coin. and this is needed every block. With KMD interest is accrued automatically for all utxo that are more than 10 KMD and you can collect it as early as one hour. Of course being impatient like that you will likely lost most or all the interest gained to the txfee. Listunspent, gettxout and getrawtransaction show the interest accrued on a per utxo basis. Getinfo and z_gettotalbalance shows the combined interests among all your utxo.

How to earn the interest: do nothing. You are earning it all the time (assuming you have outputs >= 10 KMD).

How to collect the interest: just spend funds and when it uses utxo with interest, it automatically adds the interest to the vin total, which means you can spend more than the utxo value.

I tried to make the 5% APR as easy to use as possible. There are no settings to turn on, no modes to activate, no passwords to unlock.

Since it is not directly visible in the blockchain, the only indication it exists is via the various calls. Since it accumulates at the satoshi level, just doing a getinfo call hourly you can see the interests grow.

One technical note: in order for utxo to gain interest it needs to be 10 KMD or more and it also needs to have nLockTime field set. By default in other coins this field is zero, but with KMD I changed it so just doing a sendtoaddress sets the nLockTime. What that means is that if somebody sends some KMD to you using komodod, it will start earning interest. to be sure just make sure it has nLockTime that is not zero.

Only people that are mining are likely to have utxo that doesnt earn interest. They would need to send it (anywhere) for it to start earning interest. Again I repeat that if a utxo is eligible, it will automatically start earning interest and to spend it, just spend it.

APR only works for t-address balances, there is not enough information to do the calculations at the blockchain level for z address.