Maximizing Returns On Your $IOTX
The IoTeX Network has been growing rapidly in users, devices, and Dapps – but also in ways for stakeholders to earn! With the recent launch of mimo DEX, Burn-Drop, and Token Minter, there are now more ways than ever for the IoTeX community to earn amazing returns on their IOTX and XRC20 tokens.
As crypto-assets like IOTX, VITA, METX, LABT (coming soon!) and NFTs make their way into the IoTeX community’s wallets, we are happy to share this guide that highlights must-know ways to maximize returns on your IoTeX holdings.
1) Staking & Voting
A core component of IoTeX’s decentralized governance is staking, where token-holders deposit (“stake”) IOTX to vote for Delegates and network proposals. This helps to secure the network and earns stakeholders great returns in IOTX. When staking, there are several parameters that you can choose which can impact your overall returns, which we explain below.
- Stake & Vote: staking IOTX generates votes (1 IOTX = 1 vote), which lets you vote for one or more Delegates, who contribute differently to IoTeX and pay different amounts of rewards. For more information, see the IoTeX Voter Handbook.
- Stake Duration: earn bonus votes/rewards by locking your stake for a predefined amount of time (between 1-1050 days). Setting a longer duration earns you more bonus votes/rewards, which are retained until your stake duration expires. The maximum 1050 day duration generates ~40% bonus votes, which adds ~3% APR to the your 8% APR.
- Auto-Stake: with auto-stake on, you receive bonus votes equivalent to 2x your stake duration (i.e., 14 days w/ auto-stake ON will get the same bonus votes as 28 days + auto-stake OFF). Your bonus votes are retained and your stake duration is “paused” until you turn off auto-stake. Auto-stake is more of a convenience tool, but can also add ~1% APR to your returns.
- Compound Interest Bucket: a setting you can turn on to automatically re-stake your staking rewards for maximum compound interest. You will be surprised how much this adds to your returns!
- Delegate XRC20 Tokens: some Delegates are now creating their own XRC20 tokens and distributing to their voters! Stay tuned for LABT (IoTeX Lab token).
Note: it is not mandatory to set a stake duration or turn on auto-stake – choose the settings that work best for you! We encourage you to vote for Delegates that contribute meaningfully to the IoTeX Network.
Burn-Drop is a tokenomics program where 1 Billion IOTX will be burned + dropped to eligible stakeholders to incentivize the first 1 million IoTeX devices. By setting a stake duration of ≥91 days + auto-stake ON you are eligible for Burn-Drop rewards, which are added automatically to your staking buckets every time a new device is registered. As of 10/2020, Burn-Drop offers ~9% ROI in addition to the ~12% APR you can get from staking.
Note: Burn-Drop rewards are distributed based on # of devices, not blocks/time. As such, returns are listed in return on investment (ROI) over the course of the Burn-Drop program.
3) Liquidity Mining on mimo
A new earning opportunity has arrived with mimo, which is a DEX that supports IOTX, VITA & other XRC20 tokens, and various bridged assets from Ethereum (WBTC, ETH, UNI, PAXG, BUSD). By providing liquidity to a pool (i.e., depositing a pair of tokens), you can earn 25%+ APR with some pools! The more the price of the assets in the pool change, the higher the APR of the pool will be, as more buying/selling against the pool will occur to coincide with the price volatility. For more information on mimo liquidity pools, see mimo analytics.
Vitality (VITA) is the first IoTeX Network token that rewards and promotes active community. All IoTeX stakeholders are allocated a daily share of VITA which they can claim with a few clicks via ioPay. New VITA can be claimed every day via IoTeX Wallets! In addition to claiming VITA for free, you can also bid for VITA from the daily VITA bidding pool and trade VITA for IOTX and other XRC20 assets on mimo. For more information on VITA, please see VITA FAQs and the recent VITA Update.
There is a growing number of non-fungible tokens (NFTs) on IoTeX, which you can earn for completing specific actions/tasks. For example, if you pre-ordered a Ucam you earned a “Ucam Pioneer” NFT and if you joined the Privacy Matters campaign you earned a “Privacy Matters” NFT. By holding IoTeX NFTs, you will be eligible for special token drops and network perks in the future. Don’t forget to collect your NFTs!