Dear Team,
I have a questioned for reward on NNS.
Think i have 1000 ICP staked with “dissolve dalay of 6 months (6%)”.
After 6 months of staking, let say i have “Age bonus (6%)” thenafter i am dissolving the neuron. So would i get both reward {“Dissolve delay of 6 months (6%)” and “Age bonus (6%)”}, total =12%.
Age bonus accumulates daily, so you don’t have to wait 6 months before it starts contributing to your voting rewards. The moment you start dissolving, the age bonus goes to 0. The moment you have less than 6 month dissolve delay (e.g. when you start dissolving a neuron with 6 month dissolve delay), then you no longer receive voting rewards.
So in your example with a neuron with 6 month dissolve delay and not dissolving…
…at 0 months, your age bonus is 0% and your dissolve delay bonus is 6.25%
…at 6 month, your age bonus is 3.125% and your dissolve delay bonus is 6.25%
…at 12 months, assuming you have not dissolved, your age bonus will be 6.25% and your dissolve delay bonus will be 6.25%
…at <6 months, assuming you start dissolving, your age bonus will be 0% and you dissolve delay bonus will be 0%.
You can disperse the staked ICP and staked maturity when the dissolve delay reaches 0.
If you accumulate maturity instead of staking maturity, then you can spawn a neuron of that maturity any time you have more than 1 ICP of maturity.
Note that age bonus and dissolve delay are bonuses that add to your voting power. Those values are not your returns. Currently, a neuron with a dissolve delay of 6 months and no age bonus is earning annualized rewards of 8.8%. A neuron with a dissolve delay of 8 years and no age bonus is earning annualized rewards of 16.6%.
Disclaimer: I don’t work for DFINITY. Others are welcome to confirm or correct the information that I provided.
Good resources that explain these details can be found here:
https://wiki.internetcomputer.org/wiki/Tutorials_for_acquiring,_managing,_and_staking_ICP
The only small correction: IIRC you need 1.05 maturity since maturity modulation could reduce 1 maturity into less than 1
Thank you for your response, you have provided much clarity for nns reward
can you provide me an understanding on below thing
2 If i staked 100 ICP and my dissolve delay is 6% and i have participated in voting for 1 year (spawn all my maturity time to time) then after 1 year, if i dissolve my staked ICP, how much ICP will i get.
Thank you for your informative reply
Thank you for that info. What benefits are there in starting a neuron with a minimal amount of ICP?
Could you clear something up? I just want to make sure i understand. My question is about the 8.8% rewards. If I’m staking for 6 months do I get that if I have dissolve delay enabled and/or if I’m currently dissolving? Thanks.