summary
- Rewards on DeFiChain are created through the Block Reward, distributed for staking, securing the blockchain, and funding projects. The block reward decreases by about 1.6% every 11 days because the number of DFI is limited.
- Staking is a financial product that involves providing the network with 20,000 DFI as a pledge and keeping a computer running all day with an internet connection to confirm transactions. Cake DeFi is a service provider that allows users to participate in staking with as little as 100 DFI.
- Liquidity mining is a financial product that involves providing liquidity to the DeFiChain exchange. Liquidity mining providers are rewarded with each new DeFiChain block and a portion of exchange fees.
- Decentralized stocks are tokens that have the same name and price as real stocks, but do not represent a stake in a company or provide dividends. DeFiChain communicates with various price sources to make decentralized stocks possible.
- The article recommends liquidity mining for advanced users because it involves exchanging coins beforehand.
- The article warns against freezing deposited DFI for 5 or 10 years because it is high risk and there is uncertainty about what will happen to DeFiChain in that time.
- It is important to inform oneself about tax implications before using DeFiChain financial products, as rewards may need to be treated differently than if one were simply buying and holding cryptocurrency.
