How much return do you get on curation of tribe tokens?
There are quite a lot of so called hive-engine tribes that have their own front-end and their own token. Every post on hive can be eligible to be seen on these front-ends and to earn these tokens. What matters in this respect is the tags on the post. For example, if you want to earn CTP tokens with your post, you will need to put the #ctp tag. When using this tag, your post will also be visible on the ctptalk.com front-end.
There are several tribes and it's even possible to use several different tags on your posts and they will earn several tokens in addition to hive. This is a neat way to increase your income from these posts. However, it's important to use only the tags in an appropriate way. Do your research before using the tag. To make sure that what you post actually fits this tribe.
If you stake these tribe tokens, you can also curate with this stake and earn income. A good advice is to create separate accounts for each tribe so that you can concentrate on voting on posts that carry only the tag in question. Of course this can become a lot of work and not everybody does have the time to do it. Therefore it's even more important to understand whether it's actually worth to curate with tribe tokens?
Is it worth to curate with tribe tokens?
Most of the tribe tokens have a linear reward curve and they have a 50/50 split between author and curation rewards (CTP has 60/40). However, the curation rewards that you can generate are totally different from one tribe to the next.
Curation APR for tribe tokens
I have calculated the curation rewards for several tribe tokens just to illustrate how much fluctuation there is:
| Token | Curation APR |
|---|---|
| LEO | 14.9% |
| CTP | 35.5% |
| BEE | 69.1% |
| ONEUP | 94.1% |
| CENT | 226.6% |
If you curate with LEO stake, you will get about 15% APR. If you do it with CENT tokens, you will get almost 227% APR. You can see that this is a huge difference.
The curation reward APR of Hive is at the moment around 9.5%.
Why are the curation APR's so different among tribe tokens?
There are many factors that play into these differences. Most importantly, it depends on how many tokens are minted and also how many tokens are already in circulation. The older a token, the more tokens will be in circulation and the more the APR will drop. Then there are factors like the staking rate and the voting rate that matter. The more tokens are staked and the more people curate with their stake, the less rewards you will generate.
Curation vs. Diesel pools
When you look at the curation rewards that you can generate and you compare them with the rewards that you can get for providing liquidity in Diesel Pools, it can actually be more rewarding to do the later. The big advantage with the Diesel Pools is that you don't even need to vote on posts to generate an income... But not all tokens have such diesel pools available.
Are you actively curating tribe tokens? Which ones?
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