# Staking token release schedule - Shardeum

**Published by:** [Utsavs](https://paragraph.com/@utsavs/)
**Published on:** 2022-03-10
**URL:** https://paragraph.com/@utsavs/staking-token-release-schedule-shardeum

## Content

All Proof of Stake networks have to maximize the tokens staked to improve security, for Shardeum it is even more important as the number of Shards and security of each is dictated by the number of nodes available in the system and the amount staked. Shardeum has a high percentage allocated as staking rewards - 51% of all tokens, this heavy allocation towards staking rewards indicates a commitment to reward loyal community members. The 49% of token holders will recieved 51% as staking rewards, making the long term cumulative inflation rate as ~104% (51/49) distributed over 25+ years. The objectives to optimize for token release schedule :Reward High % Staking BehaviourStaking Rates comparable to other chainsAvoid Heavy Dilution of Unstaked coinsToken Release Schedule : Keeping the objectives in mind, we will evaluate the different token release schedules that can be followed :Flat Inflation Model : Emissions = 7.5 : Distributed over 10 yearsFlat Infation : 7.5%Advantages :Simple to understand and to set expectation to end usersFlat inflation provides incentives to stake for a long time compare to Deflationary stakingDisadvantages :Doesn’t provide any incentive to improve % of coins stakedSudden Cliff in staking rewards, would pose security threat post 10 yearsToken distribution is limited to shorter time frame which might not be enough to make the self sufficient based on transaction fees only.Deflationary Emissions : The network's token release Schedule is uniquely described by two parameters: Initial Inflation Rate, Dis-inflation The initial inflation rate would be 9% and would dis-inflate 10% every year till it reaches 2% at the end of 15 years.The staking rewards are dependent on the amount of coins staked, rewards are higher at lower stake percentage % SHM Rewards = % of Emissions / % Total SHM Staked of Current SupplyStaking RewardsAdvantages :More sustainable rewards for long termAlong with token price appreciation and transaction fee increase, the rewards are more appropriateHigh staking rewards even post 10 years (~6%) in an average caseDisadvantages :Low % staking behavior is rewarded more, this type of rewards don’t create an incentive for the community to prioritize & promote stakingRewards are unpredictable, based on % stakedVariable + Deflationary Emissions : The emissions are dependent on the % of coins staked, we would take the inverse relation here where higher the coins staked, more the emissions. Long term this would saturate to 2%InflationThe corresponding staking rewards :Staking RewardsAdvantages :Creates a ve(3,3) style tokenomics, where a higher % stake results in a higher emissions. This creates a culture which promotes stakingStaking rewards are higher than most chainsInitial staking rewards would be high at low % staked, attracting users to stakeDisadvantages :Complex to understand, staking rewards are not fixedStaking rewards run out soonerFixed Staking Rewards : The inflation schedule would adjust to make the staking rates uniformInflationAdvantages :Very simple to understand for the userThe staking rate is independent of the amount of % of Staked, which in earlier model were giving advantages to having a low % of stakersStaking rates is higher than most chains over a v long periodHalving : If we have the inflation rate such as Bitcoin Halving :Inflation ScheduleNote : Initial Reward is ~12% decreases progressively Advantages :Very Simple to understandInitial rewards are quite higher than market standardsCreates progressive scarcity of coinDisadvantages :Halving could disincentivize people from stakingLess staking behavior could create a sell pressure on the coinThis could cause volatility in number of nodes participating during halving events

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