Komodo holders generate 5% KMD annually until the supply is capped at 200M KMD.
How do you get this reward?
The 5% reward starts accumulating after a few minutes if you hold over 10 KMD in your wallet. It is very similar to POS since you are "minting" new tokens. However, the difference is that your Komodo wallet does not need to be online. KMD's POS is a hybrid zero footprint proof of stake that accrues reward based on
nlocktime. The only requirement is that you control your privatekey. That means that if you want to claim your 5% reward you should transfer your KMD from an exchange wallet to your personal wallet.
Note: You can accrue the 5% stake on any of the Komodo wallets. If you store funds in an exchange you CANNOT claim reward.
How to claim Reward?
Which wallets can I use?
Changes to KMD rewards past block height 1000000:
- new KMD coins are rewarded to users when they make transactions
- total rate is ~5.1% per year if done monthly or more often
- you stop getting rewards if you haven't used Komodo network for one month (coins haven't moved in one month)
- new changes don't affect rewards accrued under old rules
You can calculate the amount of rewards you will gain by being active with varying levels of frequency at this link: KMD Reward Calculator
Komodo’s 5% Reward Consensus Shifts from Annual to Monthly
By: Davion Ziere
May 7, 2018 (GLOBAL)
Breaking news from jl777, lead developer at Komodo: "As users know, the more transactions there are on a blockchain, the more difficult it is to conduct timing analysis. Over the past year, we have measured the need for even more active movement in order to better support the KMD privacy mechanism. To implement this, the annual time limit on the growing of 5% will be changed to monthly cap of 5%/12 (0.417%). The good news is that compounding will get you rewards of 5.1% over a year. Your contribution to the privacy ecosystem will now be more closely linked to your reward. As this is a consensus rules change, it will need to activate at a future height and all existing utxos will still operate under the old rules, so this will only affect new utxo created after the activation height of 1 million."
What This Means
All KMD holders need to begin actively collecting your KMD reward on a monthly basis to maximize your rewards for contributing to the activity of the KMD ecosystem. By collecting this reward monthly, users are actively contributing to the increase in privacy for everyone connected to the entire KMD protocol. As jl777 stated, there is a small bonus granted to those who collect the 0.417% reward every month in a year, resulting in a 5.1% annual reward. It is important to note that in order to gain the ability to be compounding this reward at all, users must still hold 10 or more KMD in their wallet.
In short KMD holders (who hold 10 KMD or more in their Agama wallet) have the opportunity to actively participate in supporting Komodo's ecosystem, enhancing KMD's privacy feature and earn a reward for doing so.
In summary, these are the highlights of our updated consensus-wide KMD change:
- These changes begin after the activation height of 1 million utxos, estimated to be 3 to 4 months from today (today is May 10th, 2018)
- Boosting KMD earning potential from 5% to 5.1% annually
- Increasing KMD Ecosystem Activity through incentivizing monthly Reward Collection
- Enhanced Privacy for the entirety of the KMD ecosystem