# Stake MUT and earn 1858 percent APY

(Edited)

MUT is a game token of Muterra - a retro-style RPG game on Hive. A few weeks back Muterra announced airdrop and staking rewards to people holding Muterra NFTs. The rewards are distributed every day to the players. Many people would have already calculated the returns on MUT staking rewards. I thought I should share the calculation and more details on the same.

Before we start with the rewards, we have to know that compound interest is the 8th wonder of the world and many people underestimate the power of compounding. Here is an amazing video that explains how compound interest is powerful.

Now that we are done watching that video. I would like to show how the MUT staking rewards work. The staking rewards are not a constant value every year. Only the first year gives more staking rewards and later it will gradually reduce. It is an assumption that early birds get more prey. If the investment is done now, the rewards will be higher. It is not like later the rewards will be low but later there will be more use cases for MUT and other ways to earn MUT.

1st year - 0.925% per day
2nd year - 0.3% per day
3rd year - 0.2% per day
4th year - 0.15% per day
5th year - 0.1% per day

Based on the above data, we might think that the APY for the first year would be 0.925 * 365 = 337.625%. This is a simple interest calculation. But if we compound the interest by assuming that the players can stake more MUT tokens as and when they get it, the calculation becomes like this. Imagine the player starting with 100 MUT tokens as their balance. now the 0.925% is applied to that MUT token and the reward is given every day. Let's assume that the staking reward is also again staked.

I used this website to calculate the returns. So a 100 MUT staked will become 1958.98 MUT in one year if you stake the staking rewards earned every day. This gives the APY as 1858.981% compared to the 337.625% that we would otherwise be getting if it was just a simple interest. Below is the yearly breakdown of what would happen for the above calculation.

In addition to the staking rewards, there is going to be an airdrop as well and if we stake the airdrop, the overall staked MUT value towards the end of the year would be even higher.

MUT is going to be one of the important things for playing Muterra. The reason is, there is a lot of MUT required to level up the cards and improve the gaming experience. There will be perks inside the game that can be unlocked by burning MUT tokens. It is wise to accumulate a lot of MUT tokens now itself when there is still opportunity.

If you like what I'm doing on Hive, you can vote me as a witness with the links below.

Vote @balaz as a Hive Witness

Vote @kanibot as a Hive Engine Witness

0
0
0.000

Bang, I did it again... I just rehived your post!
Week 148 of my contest just started...you can now check the winners of the previous week!
!PIZZA
6

0
0
0.000

Do you have a link where to find this game? Never heard of it before. It’s on Hive?

0
0
0.000

it seems to be a good investment, in the MUT currency of the game, it will give a high return 😯

0
0
0.000

How can one get and stake the token?

0
0
0.000

There are two options for getting the token

• You can join the game, purchase some game assets and get Airdrop for your assets.
• Buy it from Hive Engine and stake them on Hive Engine
0
0
0.000

If I buy the game assets from Hive Engine, will I still get the airdrop?

0
0
0.000

Yes, you will still get the airdrop.

0
0
0.000

Okay, thanks, will do that right away

0
0
0.000

Thanks for an informative post!
One question, staking happens on Hive-engine, right?

0
0
0.000

Yes staking happens on Hive Engine.

0
0
0.000

Cool, thanks!

0
0
0.000

This post has been manually curated by @bhattg from Indiaunited community. Join us on our Discord Server.

Do you know that you can earn a passive income by delegating your Leo power to @india-leo account? We share 100 % of the curation rewards with the delegators.

100% of the rewards from this comment goes to the curator for their manual curation efforts. Please encourage the curator @bhattg by upvoting this comment and support the community by voting the posts made by @indiaunited.

0
0
0.000

This post has been manually curated by @bhattg from Indiaunited community. Join us on our Discord Server.

Do you know that you can earn a passive income by delegating to @indiaunited. We share more than 100 % of the curation rewards with the delegators in the form of IUC tokens. HP delegators and IUC token holders also get upto 20% additional vote weight.

Here are some handy links for delegations: 100HP, 250HP, 500HP, 1000HP.

100% of the rewards from this comment goes to the curator for their manual curation efforts. Please encourage the curator @bhattg by upvoting this comment and support the community by voting the posts made by @indiaunited..

This post received an extra 20.00% vote for delegating HP / holding IUC tokens.

0
0
0.000

Thanks for sharing.
I already had some MUTs and I will take a look on how to stake it :)

0
0
0.000

Nice. Keep staking it. It should give you nice returns towards the end of the year.

0
0
0.000

Hope there is a Diesel pool as well! And right on this is really cool!

And I have to go check this game out!!!!

0
0
0.000

Oh yeah please do check it out. We currently don't have a Diesel pool. Hopefully, there will soon be one. As the MUT circulation is just starting, we wanted to introduce Diesel Pool later and reward people providing liquidity in the Diesel pool. Yeah, so we have plans but soon.

0
0
0.000

Top notch!

I can't wait and I'm gonna go check it out.

0
0
0.000

Cool. Cheers! Go for it.

0
0
0.000

Currently we are only injecting MUT in the system. We’ll think on Pools after MUT sinks are in place. Placing the sinks won't take too long now. Our next update on 31st March will introduce a minor sink for MUT. And then major ones from April onwards.

0
0
0.000

Awesome job I got some of this token just now and steak it up!

0
0
0.000

Got it, my question is if more people came and stake their Mut, What will happen to the APY? will it get decreased or remain constant ? most of the time it got decrease as new people keep coming and more token got staked ?

0
0
0.000

A very good question. The APY is going to be constant because the daily percentage is fixed. The APY value is only based on the MUT tokens and not based on the value of MUT tokens.

0
0
0.000

I'm afraid of a high inflation rate of MUT and MUT value will be dumped hardly.

0
0
0.000

We are introducing a sink in another few days and we have plans for more sink. The game will require lots of MUT tokens. So there should be a balance.

0
0
0.000

Hey awesome bhai, I will investigate.
Hare Krishna

Posted Using LeoFinance Beta

0
0
0.000

Will be doing it tonight. Got couple of MUT tokens for holding assets. Free token earning more free token. I like the sound of that..

❤️☮️

0
0
0.000

The good thing is you got into the game early this time and according to the game Lore this also happens in your hometown.

0
0
0.000