How much interest can I earn staking on KILT as a delegator?
On KILT, a delegator receives a reward when their collator successfully produces blocks.
For the first year of KILT, which started in late September 2021, the reward was up to 8%. This decreased to 6% for the second year. Years are measured in block time, not days, so the changeover from the first year to the second year happened in early December 2022.
In the first two years KILT had less than the maximum number of collators forecast, resulting in lower-than-expected inflation. To align inflation with the original token design, the community voted to extend rewards for the third block-year. Therefore, delegators will receive up to 5.1% from around December 2023 (depending on block time).
The delegator rewards are built into KILT’s very low inflation rate, which starts at approx. 5% and falls to below 1% after 6 years, to support the sustainable and long-term growth of the ecosystem. The rewards are based on a maximum of 40% of KILT Coins being staked to support the network. If more than 40% are staked the rewards are adjusted accordingly.
Read more about the KILT Token Economy here.