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Over the past year, I have consistently shared estimated yield data for earning PROMPT tokens by staking PRIME. These estimates have frequently been referenced by the community. Following real-world validation post-TGE (Token Generation Event), I am pleased to report that these estimates were highly accurate:
The model’s estimated total PROMPT points = Number of PRIME locked × Duration × Multiplier. Stakers receive a proportional share of points based on their staking ratio.
When comparing the model with three different wallets (including my own), the estimated model predicted approximately 20% more PROMPT received than actual. I attribute this to two primary reasons:
I originally estimated that 40% of PRIME in circulation would be staked, but the actual staking ratio reached 45%. This means the total number of points exceeded expectations, leading to a more pronounced dilution effect.
The total number of PROMPT points remains uncertain because some stakers may unstake (reducing total points) or extend their staking (increasing total points).
Staking PRIME or Buying PROMPT? A Wayfinder Yield Maximization Study
Beyond this, yield estimates heavily depend on the prices of PRIME and PROMPT. When PRIME prices fall, yields rise, incentivizing users to buy more tokens and stake them. Of course, yields also depend on the final valuation of PROMPT.
With more information disclosed post-TGE, I believe the following table represents the most accurate prediction of PRIME staking yields. This update accounts for more PRIME being staked (by generating more PROMPT points) while maintaining a $500 million Fully Diluted Valuation (FDV). Additionally, a new column excludes the 28% token allocation airdropped to the community at TGE:
Staking PRIME or Buying PROMPT? A Wayfinder Yield Maximization Study
Quick Summary: Maximize staking PRIME tokens immediately to earn 106% returns in PROMPT over 797 days.
As evident from the table, yield opportunities have significantly declined since June 2024. This decline manifests in two ways: the multiplier effect continues to diminish, and PROMPT points accumulate over time, reducing the share available to later participants. This is particularly pronounced post-TGE, when 28% of the total supply has already been released, and new tokens enter circulation weekly for users to claim.
Scenario Analysis: Staking PRIME vs. Buying PROMPT
The following analysis compares two options faced by current market participants: buying PROMPT directly on the open market or buying PRIME and staking it (earning PROMPT in the process). We assume PRIME will be staked maximally with a 49.8x yield multiplier over 797 days, as previously described.
Buying $1,000 worth of PRIME tokens today yields approximately 333 PRIME. According to the table, staking these tokens maximally generates 333 × 39,690 points, or 13.2 million points.
Given the plan to distribute 400 million PROMPT tokens proportionally to all point stakers based on 1.8 trillion total points, the current 13.2 million points should yield approximately 2,944 PROMPT tokens. Considering 28% of PROMPT has already been distributed, we adjust this proportionally downward to about 2,119 PROMPT. Note that this calculation is not absolute, as PROMPT distribution actually depends on daily point accumulation, but this method provides a clear, intuitive framework for understanding yields, with values in a reasonable range.
The table below applies this figure to PRIME and PROMPT valuation scenarios at the end of the staking period:
Staking PRIME or Buying PROMPT? A Wayfinder Yield Maximization Study
On the other hand, calculating returns for those buying PROMPT directly is simpler. Ultimately, assuming a PROMPT price of 0.50,a1,000 investment yields 2,000 PROMPT tokens, fewer than obtained by buying PRIME and staking it fully.
Of course, the advantage of buying PROMPT directly on the open market is the ability to cash out at local highs whenever they appear.
Assuming a 1billionPROMPTvaluationattheendofstakingandstablePRIMEprices,tokenvalueatstakingexpirationwouldreach3,118, as described above.
However, given cryptocurrency volatility, PROMPT could likely reach all-time highs within the next two years (e.g., a 4billionfullydilutedvaluation,similartotheFDVlevelVIRTUALreachedduringtheAIagentcraze)beforerevertingtoamorereasonable1 billion FDV range.
If you buy 1,000worthofPROMPTtodayontheopenmarketandsellatthecurrentlocalhigh,youwouldearn8,000, more than double the value obtained by staking PRIME.
Summary
Those seeking PROMPT exposure, whether through fully staking PRIME or buying directly on the open market, should consider the following:
What do you believe the final values of PRIME and PROMPT will be at the end of the 2-year staking period?
What do you think PROMPT’s all-time high will be in the next two years, and more importantly, can you sell at that peak?
Ultimately, this depends heavily on individual circumstances. It’s undeniable that most investors fail to sell at market highs. Meanwhile, as many PRIME holders have experienced, locking tokens for over two years while watching their value plummet 90% is agonizing. Of course, given PRIME’s leading position in the Web3 gaming space and upcoming catalysts this year—including the highly anticipated releases of Colony and Sanctuary—it’s hard to imagine PRIME falling more than 50% from its current price.
Additionally, the team is already considering new tokenomic mechanisms to achieve PRIME token deflation and enhance value accumulation, assuring me that the downside risk for this gaming token is effectively contained at this stage.