Buy crypto anonymously on the Incognito pDEX   

Incognito staking earnings are not adding up for me

#1

I am a new user to the platform and I recently staked some PRV, but the earnings do not seem to be adding up to 57% APR.

Some background - I am trying to create a record that shows the number of PRV earned each day, so then I am able to calculate my income for the day as well as my tax basis in the PRV earned each day for United States tax reporting purposes.

I staked 1,041.952200 PRV on Sunday, May 3 at 7:19 PM EST.

I am no Excel wizard or anything, but my understanding is that the following function should provide the end of the day balance of PRV for a full day of staking:

=(prior day’s ending balance)*(1+(0.57/31536000))^((1/365)*31536000)

However, this function produces results that are not consistent with what I have been earning.

I also took a look at user Rick_Shah’s simple staking pool interest calculator and adopted the use of the FV function on a separate spreadsheet. This produced results very close to what were produced by my equation above.

Please note, given that my first day was a partial day, I calculated a full day’s earnings and then multiplied that by (281/1440), which should approximate what the partial day earnings should have been. I used that ending day balance in both of the computations I mentioned above with the same result - a discrepancy.

Finally, when I substitute 44.9% APR instead of 57% APR the results are close to my actual returns.

At exactly midnight this morning (5/6/2020), my PRV balance was 1,044.770087.

Does anybody have any thoughts about what is going on? I would be really pleased to find out that there is actually an error in my computations.

3 Likes
#2

So I’m not great at the math on this (though I should be), but I think the difference here is that the 57% is APY not APR and your calculation isn’t taking into account the compounding every second which you need to get to the 57%.

If you have already accounted for this, I apologize.

I am sure someone more authoritative will jump in.

2 Likes
#3

This is helpful. I wonder if the base interest rate is published somewhere. I guess I need to look through some additional documentation to see if I can find it.

1 Like
#4

I was informed that the 57% rate was already factoring in the continuously compounded interest rate.

What I do to figure my daily earnings from staking is take the amount of PRV convert to a stable coin (this gives me a USD value) and then * 0.57. Then / 12 / 30 which should give you daily earnings.

If this is slightly off please forgive me as I just woke up and I am operating off of minimal sleep.

2 Likes
#5

Is there a place where I can see the precise number of PRV earned on a given day? If I could find that somewhere it would be ideal. I have not been able to find it, which is why I have been resorting to math.

I guess in order to compute the way I am trying to compute I would need the raw interest rate without the continuously compounded interest factored in.

If you are keeping track for tax purposes, I think what you would do is take an average of the high- and low-values of PRV on a given day and multiply that with the PRV earned on that day. That would give you your income for the day and your basis in the PRV earned on that day so you could compute gain/loss on a subsequent disposition.

1 Like
#6

Try stakingrewards.com. They publish daily earnings, and you can make calculations based on different price points.

Search for prv

1 Like
#7

I don’t know if you are in the Telegram group, but there is a discussion of @Rick_Shah’s spreadsheet on April 27 where someone asks, and he explains the APR is 45.11%

3 Likes
#8

Year APR and APY are different

1 Like
#9

Thank you for this information! I should be able to complete my spreadsheet now and be compliant with my tax filing obligations.

2 Likes
#10

Hi @spottedsalamaner, welcome to the community!

As @Patrick_Cooper pointed out, the 57% rate that is advertised is the annual percentage yield. Which is calculated by compounding the interest earned from the annual percentage rate. Which comes out to around 45.11%. I have created a simple excel sheet that you can use to estimate your yearly earnings. You can find the spreadsheet at this link: https://docs.google.com/spreadsheets/d/1-53ClJDi0m9uqWRZgFj1YuWCD-8JGsQt12poogRGbyk/edit?usp=sharing

Edited: I noticed someone changed the APR on the google sheet. I updated it to the correct one now. And, locked the cells so this mistake doesnt happen in the future.

4 Likes