Staking Strategies with Thomas REX and Dr. Kelly Snook
In this REX TALKS interview held on September 27th, 2022, Dr. Kelly Snook and Thomas, the creator of the REX protocol, take us through in great detail how to get the most out of REX.
Dr. Kelly Snook also shares her staking strategies, and a staking strategy calculator that she created.
Useful links:
Kelly’s Staking Strategy Calculator: here.
Website: https://rex-token.com
REX links: https://linktr.ee/rextoken
Worldwide Communities: https://linktr.ee/rexcommunity
News: https://twitter.com/rex_token
Telegram: https://t.me/newrextoken
Since this is a transcript of human speech, typographical errors are common! We have done our best to fix them, but please don’t hesitate to let us know in the comments below or in the telegram chat and we’ll correct them!
Thomas: Welcome everybody to today’s Rex Talks. Today in our second Rex Talks, we are going to be analyzing Rex staking strategies, how to max out on Rex, and how to use the protocol in the best way. And for this I am here for you. I’m Thomas, the founder of Rex. And with me there is Dr. Kelly Snook. Hi Kelly.
Kelly: Hi Thomas.
Thomas: Hi, how are you?
Kelly: I’m doing well, thanks. How are you
Thomas: Ready to talk about Rex?
Kelly: Yes, always.
Thomas: Always awesome . And yeah, we’re gonna have a conversation today. Some Rex talks. We will also share our screens, or especially Kelly we’ll share her screen. So you can see how staking works in Rex and how to utilize that for achieving your goals that you have, long term, short term, whatever.
And we’re gonna explore the protocol and the staking strategies a little bit with you. And so yeah, I would be ready to go. , at first I would say let’s start with what Rex is, but only in a few sentences, I think when you are watching this video right now, you are on the Rex website already. Which is on the screen right now. Actually we are in the auction phase of 222 days. As you can see, there are 150, 135 days left of daily auctions, which is mainly the time in which we mint most of the tokens to people who participate in the options. So that’s one of the ways you can get Rex tokens, participate, your options, and then you can stay your Rex.
And the other way would be to just buy Rex on Pancake swap. Yeah, absolutely. That’s the two ways. , we can see here Poo Coin for example, that’s one of the websites that you can use to buy the Rex token. You can use Pancakeswap.finance, your, or what is even more interesting maybe is indeed, this is Pancake Spot finance.
You just go to trade and swap. Then you choose your tokens. Here you can see BNB, so we have BUSD on top. You can put some dollars in there when you connect your wallet and you can swap that basically to Rex tokens. So you just connect your wallet like shown in the video right here.
Thomas: to show all your $40,000.
Kelly: $40. Thomas . Let’s be real.
Thomas: Just kidding. I know you prepared this wallet and sent all the other $39,000 away.
Kelly: Gosh, I wish.
Thomas: Yeah, let’s, But this is just to show how to swap BUSD tokens for Rex tokens. You just put a number in there and then you hit the swap button and just swap it.
And then you’re gonna have liquid Rex in your wallet directly. Those liquid REX in your wallet. You may as well be used for staking. You could use them to create some sort of staking letter like to create multiple stakes that end in the future, like every month or even every week or even every day.
Whatever you like to do with that. You can do that in the Rex app that we will show.
Kelly: Wait. Before we do that, I just wanted to say that for the first time you go to Pancake Swap, you may not have it, Pancake Swap may not know this token. So if you need to add this token manually you can just paste the token address here.
The token addresses can be found on the Rex app. On the dashboard. Down here you have all of the different token addresses. So you’ll just wanna put in the token address for Rex, which ends in seven E five four, and you just put that into your pancake swap address, paste address field there.
And then it will come up with the correct token to swap. So I just wanted to say that cuz sometimes people are like, Oh, I can’t buy it because it’s not there. So that’s how you do that?
Thomas: Absolutely. Yep. Yeah. Thank you for saying that. That is very important. Yeah. I think there are a lot of people who are very new to crypto and all those details are very precious.
Indeed. Yeah. Yes.
Kelly: Wow. Yeah, that just got me 376,111 REX. If I go to the staking page on app.Rex.io. So now I have this Rex that I can stake. So Thomas, maybe you could just for a second explain exactly what a stake is.
Thomas: A stake is a method to lock up your tokens which actively burns those tokens.
So they are not available in your wallet any longer. They are technically burned and the smart contract where you do this transaction of staking, where you create your stake. Basically saves the number of REX that you had, which is called your principle. And it also wants some numbers from you.
For example, the duration of your stake, you can say I want to take this for seven days, which is the minimum, or for even up to 10 years, which is the maximum duration of your stake. And the longer your stake is the higher your rewards will be per day. Or you might say your APR or yeah.
So when you create the stake you tell the smart contract, by another website that you have seen how long you wanna stake it, and then you also can give it a name. So maybe you want to stake something for buying a car in four years. So you just make a stake with an amount of tokens and for four years.
And you just name it for the card. And then there are some other cool things that you could do. You can make it irrevocable. When you’re absolutely sure that you don’t need the money before then you will get it, you can make it irrevocable. This means you cannot withdraw staking rewards that the stake earns before maturity.
You can do that which means irrevocable. And for this more commitment, it earns you more by taking rewards. So the APR will be higher, you will get more shares. We will talk about shares in a second. When you make it irrevocable, it’s more of a commitment if you make it irrevocable, so it gets you more shares and thus more rewards.
And the other thing is what you can do to boost your stake to get even more shares and higher APR is to get a T-Rex. This is the other thing that you can make, and you can see that on the website. It’s those factors that will be calculated as the shares that will be in your stake.
It’s the T-Rex, you have it or not. You make the stake irrevocable or not. And then the duration of your stake. Those are the main factors. How your APR is being calculated each day, what your APR will be.
Thomas: Okay. What is the stake? The stake is basically the locking up of your tokens.
And this technically burns your tokens and gives you shares instead. And the number of shares is. The relevant number for determining your apr, your y, like the rewards that the stakes will earn you. Some factors that you see on the website right here are important when creating stakes. First, it’s the duration.
The longer you take the more shares you will get. There’s a factor in it. So when you do the minimum duration of seven days, you can see that in this chart seven days it gets you almost no bonus shares on top. But when you do it for 10 years or five years already, it gets you a lot of bonus shares and those shares will earn you more rewards, right?
So the duration that you choose as we’ve.
Thomas: And the minimum duration is seven days after. The maximum duration is 10 years. So you have to decide in terms of strategy, will it be like a short stake for maybe a few months or maybe for a year.
Or maybe you just wanna buy a car in three years. Then you can put the name of the stake and the stake duration in there. And also you can determine if a stake is irrevocable or not, which is the check box that we see right there. And when checking the checkbox, you will get the bonus of 25% more shares in your stake.
So it earns you more rewards. When making, creating a stake irrevocable, this also means that you are not able to withdraw those staking rewards while the stake is active. So you really have to wait until the stake ends and then you get your principle, your stake res amount, plus the rewards back, but not before that.
So only check this irrevocable stake check box when you are really sure that you will. That you will be able to really wait until the stake gets mature. And you can officially, like regularly close the stake and you withdraw your, you get your principal back that you staked plus the rewards. So irrevocable stake is very interesting when you have a certain goal to achieve and maybe two years and it’s re tokens that you absolutely don’t need, you just lock them up for in this example 730 days which is two years, and it’s for your car.
So you can remind yourself of what it was for. And then another thing is to boost your shares that you get for a take is what if you have a T-Rex or not. In this example, there is a T-Rex in the wallet. You can see that right? And this also gives you a number, 25% more shares. So if you want to max out on staking and get the best possible a p r, then you would want to have a T-Rex.
You can buy that from the dashboard and you will want to make your stake irrevocable. This is how it works. You just make a stake and you get those shares and the number of shares that you get depends on whether or not you have a t-Rex, whether or not you create your stake irrevocable, the duration of the stake.
Those factors go in there. We could also mention that. The share price plays a part. The share price will always be rising or be it fairly slowly. Of course, it will rise slowly. It will probably do something like a two x in, in two years or something like that. But still, the earlier you think the more shares you will receive because when the share price rises over time, you’ll always receive a little bit more share a little bit less shares, p for your fixed.
So earlier, it’s a little bit better than later. Okay. What we can see right there is the calculator rex.io, which is a little tool that Yoko has built for calculating rewards that you can expect from your stake. This is a very cool tool to play around with the numbers. To play around with future price, with the share price, with the fit durations.
When you shift, when you move those things, what is it called? Kelly? .
Kelly: Sliders. Sliders,
Thomas: Absolutely. When you, the sliders you can see how your numbers will change. And this is maybe interesting for you to figure out a strategy as well. Yeah. Kelly, maybe you want to say some words about the staking calculator.
You used it already. Do you think it’s good? Is it, How does it help you to calculate
Kelly: something? Yeah. The main thing that I was interested in when I was trying to figure out my own staking strategies is a couple really important numbers. The first number that’s really important for me is this yearly APR.
And I think that one of the main motivators for making this calculator that Yonko made is because people were wanting to know, okay, but what are the rewards and what are, what will I be set to earn? And so you can really get a sense for how your various choices affect that apr.
And then you can put that into your own calculations for timing and how long you wanna stake for, and. And really whether or not you wanna make that irrevocable and what your different choices are. So we’ll get into that later. I can show you the little calculator that I built that uses the information that you can get from this calculator to go more in depth in terms of planning and strategizing.
But you can enter in I, I don’t usually use this estimated price at maturity because it then also affects your input price. So I just put these numbers into my own calculator just to understand how much I’m gonna earn in various situations given what I put in and what my profit might be in, in what amount of time.
But this is an extremely useful and easy and fast way to use the current share price and the current Rex price to just determine. Where we are, of course these numbers may change as the staked amount overall changes. And so there are some variables here that are unknown, but it’s at least a place to start in calculating how your re stakes might perform over the next few years.
Thomas: Yep. I think that’s a very useful tool. Yeah, absolutely. And you just mentioned that you built another calculator yourself. Are you willing to share that or ?
Kelly: Yeah, I was thinking we might ease into that though cuz it’s a bit, it’s a bit detailed. It’s a tool that I built to really see over time to be able to just see in detail over time how different parameters affect what’s drawable and the overall earnings of the stake.
But maybe we need to speak about a few other basic concepts first before I can talk about this. Because I think it might be a bit much if somebody’s coming into this not quite with their minds not quite yet wrapped around staking. We might wanna talk about some other, some of these other options on the staking website first.
Thomas: The other things that you can do right there. Here we have the create a new stake section where you can create a single stake. There are those question mark things that you can also hit if you have any questions. And there are some explanations in there.
With what we just said, just to remind yourself, you could also as well, of course, anytime, read the paper or watch all of the great videos that we have right there. For example, Kelly did a whole white paper walkthrough on video with examples that will help you understand how the staking mechanisms work.
And there is not too much strategy in it. We will skip that for a second. But you feel invited to watch those videos with Kelly. They’re really exciting and really good and really detailed. If you want to get familiar with Rex you will find those videos linked right on top of their Rex paper, which is Rex.io/paper.
Okay, so let’s scroll down a little bit. The other thing we have right there in the next section is a section where you can create multiple stakes. In a single transaction. And this is exciting because in other protocols, when you want to do some sort of staking letter for the next 10 years you have to manually create 120 stakes or 119 stakes.
That’s a lot of work and a lot of transaction costs and so on. We have done that before. For testing purposes. When you create a batch stake, like 20 times the same stake, you can do that, it’s a bulk stake. Or you do or you can do a letter as well so that the stakes will end every month or every day or every week.
You can set all those things right here and give it a name as well. Then you do that in one transac. And that is saving so much time. And this is so brilliant. When you create a bulk of 20 same mistakes with a certain duration and description, a certain amount of Rex tokens, you can make all of them irrevocable or not.
They will all be made with the T-Rex. In this example, you can just create 20 of those stakes and it will cost you around $4. That’s all for 20 stakes. And you can do that in a single transaction.
Thomas: So what we have right here in this section is the possibility to create multiple stakes and a single transaction.
This could be a letter of stakes, like multiple stakes that will end like every month or every week or every year. You can just type the numbers. In there it will create multiple stakes for you as a lever. Or you can do it bulk, which means that a number of the same size and duration stakes will be created for you.
And then you can just create all of them and the single transaction, and this is amazing because it saves you a lot of time and even transaction costs. So this is a very comfortable situation right here. So when you find a staking strategy for yourself that fits your needs you can just do those things.
If that involves a staking area, you can just create yourself a ladder in a minute. And we have checked that when you create 20 stakes in, in this bulk situation or in this letter situation, 20 stakes, creating them will cost around $4. So that’s quite nothing. If you compare that to what it costs to create a single stake on an Ethereum staking token that costs a lot more.
So 20 stakes just created a ladder is like $4 or something. So this section of creating multiple stakes is really interesting and saves you really a lot of time. I think it’s a very good invention that we did there in Rex. Do you use that, Kelly? What do you
Kelly: I did experiment with it, but I have to say that I’ve taken to just creating only 10 year revocable stakes, which I’m happy to discuss later.
But I just found that you can see here even And we may we, it might be nice to explain this right now, what is the difference between bulk and ladder? Let’s just look at the difference. But you can see even just if you have the bulk button ticked, what that’s doing is it’s creating four stakes identical with each other.
So it’s splitting this maxim, this amount here into four chunks, and it’s making four stakes of 376 divided by four each. And then it’s, all of those stakes will end in 182 days from now. And so that’s, it wouldn’t be called monthly. In that case, we’d call that a let’s see. Let’s just call that, let’s just say if we did it for a year or a, let’s do a month, Sorry.
Let’s do a 30 days stake. So all four stakes would end in 30 days. For 30 day stakes. So that’s what bulk is. Four, four stakes of equal duration. 30 days. In this case we would make them, maybe we could make them irrevocable so we get as many shares as possible. So you can see there’s not much bonus for duration because one month isn’t very long and the total amount that you, of shares that you get, and that’s each one would be this amount divided by four.
So the total amount of shares you get is 5.7 million shares in this bulk scenario. So that would be like if you went up here and you just put 25% and you made that for 30 days, and then you did that four times. Irrevocably that should be identical. A number of shares. And you can see that is the case, that this is a quarter of this.
If you wanted instead to do a ladder, which is also very interesting you can actually see, I’m gonna click on the ladder and immediately we’ll see the number of shares go up and we’ll explain why. So what does the ladder do? What the ladder does is instead of making four stakes of identical length, it makes the first stake 30 days.
And now we’re gonna just call this one monthly. It makes one stake that’s 30 days long and then it makes a second stake that’s 60 days long, and a third stake that’s 90 days long and a fourth stake that’s 120 days long. And because there’s, Stakes that are slightly longer in there.
That’s why the amount of shares goes up because you have one stake that’s essentially four times as long as the initial one. It doesn’t go up by much because it’s still really not very long. In terms of the staking world the max stake duration is 10 years. Even four months isn’t very long in that curve.
And the real bonus for time, as you can see in the paper, comes later on in, in longer, longer durations. It’s quite a flat curve in the beginning. Four months isn’t that much better than one month. It is better though, so you can see that it’s better just in the number of shares. You can see 5.7 here.
Million and then 5.74 million. If you do the latter. So Thomas, you asked me why I don’t do this, and it’s because, and I’ll show you the numbers in more detail later, but it’s because the bonus that you get from the longest duration is so much greater. The amount of The amount of shares you get and therefore your apy and the and the longest stakes is so much higher than actually and may.
And if you can, if you make it revocable so it’s not irrevocable, if it’s revocable, that means you can withdraw the interest at any time, then that actually can set you up for compounding your stakes earlier and overall getting a lot more gains out of the same amount of initial investment.
So that’s why I do that, Thomas, and now I’m happy to go into detail on that later. But I do think it’s actually for people that wanna stake it and forget it, it’s an amazing compromise in a way or it’s an amazing Convenience, to just, to be able to build a ladder. Not think about it, not worry about it, make it irrevocable, and then every 30 days go in and collect your earnings.
That’s a really cool thing. And, for people who are looking to invest their money without having to spend a lot of time tending to their stakes, it’s an excellent option.
Thomas: So you would go for, actually, you wouldn’t but you could create a letter that has a stake ending monthly for years to come.
When I understand that. Then the longer the stake, you create a letter, so there’s a lot of stakes you’re creating right there. And the longer the stakes when they end, the more shares it will have had in it. So it’s like you get more res from every new ending stake every month, right?
Kelly: Yes, that’s right. Yeah. So you see, if I made 16 of them of the same duration, so the longest one is much longer, you can see the number of shares went up even more. Yes.
Thomas: That’s interesting. Okay. Perfect. And then in the stakes. Are there any stakes in that staking active staking section at the bottom of the
Kelly: page? Yeah, I’ve got some stakes in here that I made that I transferred in here just so we could talk
Thomas: about quite quickly if you see
Kelly: there. Yeah.
Just to finish up that comparison that I was talking to you about before, the reason why I’m always, I always have these intentions to experiment with ladders. And then I see for example if I take this amount of money and I make 16 lots of years of staking, I could do let’s see, if I did 10 and it was just ending yearly, can I.
No, it doesn’t in six months. So I think I’d need to do 20. So if I had a yearly staking ladder with this amount of money, the amount of shares I would get for that is 11 million shares, which is as, and if they were all irrevocable. So the maximum number of shares I could get out of this investment would be 11 million.
But if I look at the 10 year irrevocable, it’s 17 million shares. So it always feels to me like I want to do the latters, but then the benefit of the number of shares for the longer revocable stakes is so much, much greater. And I wasn’t sure about that until I built my calculator and now I’m pretty sure about it.
But we can look at it again, more in detail.
Thomas: The next question in this situation would be so would it be a difference if you. Then create one fat stake with all of the recs that you have there, liquid? Or is it as rewarding when you create a bulk stake and divide those into 20? I’m
Kelly: thinking well, bulk, bulk stake is less.
Oh, oh, you mean bulk stake of a maximum duration, you mean? Yes. So let’s just say, I don’t know if I can do that? Hang on. 10 years.
Thomas: I was thinking about bigger pays better. This doesn’t exist. Oh.
Kelly: You could have brought up No, it’s exactly the same, Thomas. If you’ve got 20 stakes bulk stakes of the same duration, it’s this exact same number of
Thomas: shares.
Yes. Just wanted to point that out, that if people want to, if you have a million Rex tokens and you wanna stake them for 10 years it’s the same amount of shares that you will receive in one fat stake or in 10 smaller. Or 20. Yeah it’s quite the same. So you could as well use a bulk taking function there.
This gives you more flexibility in Rex because you can, of course, later sell some of your stakes if you want to. And in the decentralized exchange for the stakes that you can see on the left side of the page. And there’s the dashboard and so on, and there’s the DEX, which will open on the next day.
1, 1, 1. Yeah. So you will be able to offer your stakes for sale there. And like an eBay for stakes, right? for a price. And yeah. So if you ever need to offer a stake, you can do that right there. So you might want to split your stakes. Even, especially when you want to go long term, not creating one fat stake would be my idea.
But create a bulk of many, same duration, very long stakes, for example, irrevocable or not. By the way, Kelly, did you say you would go with those very long 10 year stakes, reval, revocable, or irrevocable? Revocable,
Kelly: Yeah. Revocable. Because within a couple of years, a little more than two years you can start compounding those stakes, obviously, depending on the share price.
But definitely within five years you can compound and pull some profits and stay and then restake with the same amount of shares which I can show in the calculator. Okay.
Thomas: To, just to understand that to do some easy math when you get a certain amount of shares, and so that means you will have an APR of let’s say 50%.
Then you can do the math when you get the same amount as Rex that you just staked back as rewards. So you can stake that again. That’s the compounding you’re talking
Kelly: about. Yes. It needs to be a bit more though because the share price will have gone up as you were discussing.
. That’s why I built the calculator to calculate the share price going up and then how much you would need, how. Yeah how much past 100% you’d need to go in order to be able to pull some profits and restake the same amount of shares. So it’s gonna be, it’s gonna be more res when you restake, because the price, the share price will have gone up.
So yeah, we can definitely discuss that. Did you wanna talk about these stakes first or do you wanna talk about that now?
Thomas: Maybe you want to explain the active stakes that you see there.
Kelly: What, Sure. Yeah. As I was saying I like to stake tenure revocable so you can see I, and then I started doing this thing where I would put in the title how much that stake cost me at the time.
So since I made these stakes The price has gone down a bit. So you can see that this stake that I started with $6.75 cost me to make this stake. Now it is a little bit lower at 6.64 BUSD, but I made the stake on September 26th. So I guess that was yesterday because today’s day is the first day.
This is a 10 year stake with a T-Rex and so far it hasn’t earned any interest. So there’s nothing here to show us what APR it’s getting, but typically along, and you can actually see that also in Yonko’s calculator. You can see that the stake of maximum duration that’s made.
Not irrevocably, but is made with a T-Rex. We’ll usually get between 46 and 47% APR. So far that’s what the APR has been. So in my stakes we see that’s the case. It’s a little bit higher than 46, but this one I made on September 14th. The initial principle I put in was about 158,000 rex. So usually what happens is if I go to an auction or somebody uses my referral address, I get a little bit of liquid Rex.
And so whatever liquid Rex comes in, I just stake that for 10 years revocable, and then I give it a very uncreative name. If it’s a 10 year stake, I just call it long usually. So I have a lot of stakes called long, but then I started also putting the value of that stake at the time of staking. Just so I could Go ahead.
Thomas: Yeah. I’m sorry, I didn’t want to interrupt you. I just wanted to say that. In the third one. You can see that the progress of days is zero because you made it yesterday, so like it starts today so it hasn’t had a full day. So there are no rewards in it right now. Yeah. In the second one, the one that’s named long it shows quite an incredible APY of this, what you just explained. 47%. That’s quite high. Yeah. What would happen if, for example, Rex gets listed on centralized the exchanges in the future at some point, and people go by Rex tokens on centralized exchanges and let it let them just be there and don’t withdraw from the exchange into their own wallet and stake it like you just did, but let it just be there and let, just assume people do that in the future.
What will happen to your APY Will it affect the APY or will it stay
Kelly: The same? It’s a good question. I’d love to hear your answer, but I’m guessing that it would make the APY go up because that would mean that all the inflation that’s happening is being split between those who have stakes and it’s not being distributed to those people who are holding tokens that are outside of the staking protocol.
So I would imagine that this APY would go up if the percentage of tokens that are staked goes down.
Thomas: Yep, absolutely. That’s what’s gonna happen when there’s less stakes. I think that’s always interesting in those staking models and less people stake, and that will probably be the case in the future. You can see that in, in other warm known staking tokens.
Kelly: Speaking of which I have these data up here just because I’ve been using it just to think about this. Somebody made really nice, you
Thomas: there. Random example of tokens. Random. Yes. And yeah, you can really say that. Rex owns some; it’s quite similar to what happens right there. We all also have those shares, so when you stake, you get shares instead.
And Hex, they call that the T shares, which is basically an abbreviation for a trillion shares. And Rex it’s good to have a million shares already. You don’t need to have a but it’s like the same mechanics. And you can see the staking participation in this chart and the maximum APY.
So what we can see here is that the staking percentage. HEX went down over time, right in the beginning. A lot of people left, been staking then and went down to 10%. So that means that the people who are staking get like 10 x the average a y that is programmed on the protocol, which in Rex means that it’s in Rex that’s currently around, let’s say 50%, something between 40 and 60, so let’s call 50% in Rex right now. So we are quite there in line and it probably, it will go down in the future. So the people who will be staking will earn the high, very high APRs. We can, we will be able to see that then. Yeah. And the interesting thing is that the website direct website shows you based on the data of the already past days the rewards that you earned per day, because of course the website knows how many shares there have been every day and how many shares you owned in your stakes, so you can easily so the website will definitely show you the exact amount of reps that you will get when you enter your stake or like the rewards that you have earned already.
And this displays you the are, So this is not an arbitrary number that you see in your stakes in the staking section when you scroll down to your stakes. But it’s really the actual number of Rex tokens as rewards that have already earned you. And the, and that is the precise APR that you have.
That’s the actual character, actual number. Yeah.
Kelly: Yeah, we don’t exactly know what’s gonna happen to that APR. So in my calculator, I made it variable that you can there’s an APR appreciation. What is, what’s that?
Thomas: What is
Kelly: that? An apr that’s so you can just see what would happen if the APR went up or if the APR went down.
Like what would happen to your investment. So it’s a very simple model of just a, like a linear thing. Let’s say the APR goes up by some percentage every day or down by some percentage every day. So that’s that. When I come to talk about the calculator, that’s what, that, that’s what that is allowing for.
Just in case the APR does. So incidentally, what in this HEX Plot is here. This big spike here is at the end of auctions. So in HEX, it was a year of auctions, and so things go a little haywire temporarily around that time because everyone’s initial stakes are ending and people are selling and people are buying and it’s gonna be quite maybe chaotic for a day or two or three or something like that around that time.
But you can see what Thomas was talking about here as probably this thing here. I don’t know what that was, but I suspect that was like a big marketing push. Or maybe it was like maybe it got listed, maybe hex got listed on some big exchange or something happened that caused a lot of people to buy.
That’s what you were talking about Thomas? Like when if lot, if there are a lot more holders, so the percentage of people staking goes down, then the. Then it might go up. There’s probably these different phases that will behave differently in time, and then things will stabilize probably quite a bit after the auctions are over.
But I just put that in my calculator so that there is a column that actually has the APR yeah, APR appreciation in there right now, in the way that I’ve calculated it. I’m just to get a very basic idea of how things might perform. I’m just assuming that it’s gonna stay flat at that same amount.
But yeah, it could go up, it could also go down. It could go down. How could it go down? What would what could happen so that the APR would go down, Thomas,
Thomas: If everybody’s staked.
Kelly: If everyone staked. Yeah. And more people staked and then nobody was just buying and holding tokens.
One other thing that was happening here is that the OA, Richard Hart was buying up tokens and then just not staking them. . So during this period he was buying buying buying. And then, but that’s
Thomas: absolute speculation. I know that the first thing that you just mentioned on the very top left when it went down the first time, so hard HEX has been indeed listed the first time I think it was around that time. It was during the phase already as well. Yeah. Yeah. But that’s speculation. I think what’s important to say here is that when fewer people stake, the people who are staking get higher APRs and vice versa. And another fun fact, if everybody would be staking, there would be no liquid tokens, no circulating supply, which would result in a market cap of zero
Yeah.
Kelly: Yeah. That’s why you. Is that why you have the different market cap numbers here in the statistics?
Thomas: Yes. Because you can ask the Rex Smart contracts for the total supply, which is giving back the number of the circulating supply. . But if you have Rex tokens and you stake them. They are in a way still there.
Of course, they’re locked up. But basically it’s, it was money before and it is money waiting for you. You could also say that this should be counted to the circulating supply. And of course in crypto there is a name for that. For this locked value, it’s the total value locked, the TVL it’s a term that we use in crypto, right?
The total value locked. And so when you add those things up the circulating supply that has a value and the locked up values, then we speak of the allocated supply. , which is if all the tokens that are as well staked would also be circulating. That’s the allocated supply. Yeah, that’s basically Yeah, that, that’s interesting as well. I think the supply is a better number than what they do on the let’s say coin market cap and coingecko. When you look up the numbers and market cap and then you think that’s not true. That’s not the market cap, right?
It must be more. Cause they don’t count in all the locked up tokens. They could really ask the smart contract for this number because it’s programs there. You can just ask not for total supply, but for allocated supply. It’s such an easy function, but they don’t do that. They are not to change those things.
That’s why we put it on the websites to give you a better feeling of what’s really happening like that.
Kelly: Oh, that’s great. That’s good to know. Yeah. . Let, we should probably just say that in this calculator, we don’t actually know what the percentage staking is gonna be in the future. So whatever number is here is the estimate based on The current values, right?
Thomas: Yes, I think so.
Kelly: Yeah. Okay. Very good. . Just to finish off the stakes that I had here as example, The last one. So this one is very, the middle one is very typical of the stakes that I tend to make, which is the 10 year revocable ones. And then but I did also after you and I had that little exchange on an AMA recently where you were rec, you reminded me that something that I hadn’t been remembering hadn’t I had forgotten since.
Reading the white paper, which is that when you wanna put a stake onto the DEX, you can’t offer a stake unless 10% of its duration has already passed. And so I had been making all of these 10 year revocable stakes thinking, Oh, these will be great on the DEX because people want revocable stakes. And they’ll be earning a lot of interest and they’ll have a high APR and they’ll be very valuable.
And then, I forgot, I had forgotten that on day one 11, when the stake DEX opens, that’s not 10% of 3 6, 5 3. So I’ll have to wait a while to put those stakes on the staking DEX. So I then started making some of my stakes just long enough that when the DEX opens then I can offer them on the DEX just for fun.
Because I thought I wanna play around with that staking DEX. One of the things I wanted to talk to you about today to see if you had any, if you could think of any motivation to actually sell other than desperation. So let’s assume I’m not desperate for money and I would just wanna put this stake up on the DEX.
How, why would I do that right now, given that value? So I paid 40, $40 for this stake. I made it so that I could put it on the DEX right when the DEX opened, but right now that stake is only worth 27.8 B U s D because the price of Rex has gone down. It is a revocable stake, but let’s say if I were gonna offer this stake on the DEX, Thomas how are we going to, like, how is it gonna work?
How are we gonna decide what? We’re asking for a stake. Do we ask a certain amount? Is it just that people offer and then we can accept or reject an offer? And why would I put this on the DEX right now? What would it get me that just holding onto this stake myself wouldn’t get me?
Thomas: Desperation is a very good example,
So we yeah it’s just the flexibility that you may want to have. You are able to offer any mistake that you have as long as this, as it has passed 10% of curation. But that’s correct. But whether it’s from your auctions, irrevocable, revocable, however long ever, but it doesn’t matter. You can offer any stake there for any price that you want to have.
I think some people will just offer stakes. To see whether it works or not, see, or whether they can, like for experimental things and yet just to play around with it a little bit or maybe yeah, do some calculations. Imagine you like a hundred stakes offered there, or maybe 10, I don’t know.
And you can compare those things and those stakes by the numbers in the offer. You will be able to see the shares per dollar because obviously the person who’s offering the stakes sets a price. , the offer will show you the number of shares that are in it and the number of res and rewards earned and all of those things.
And you will be able to see all those things and put that in relation to the price. So you can really see what is the best price in terms of where do I get the most shares that I can buy right now for a certain amount of dollars, like shares per dollar. You can sort the stakes in the DEX in this regard, and then choose the most per dollar.
And you just buy those stakes. You can, you could even trade on it if you have a lot of money and you want, you, you don’t want to buy the tokens or just explore this space. Because obviously the main reason for the people to sell a stake on a deck is probably desperation or maybe it’s experimental as well.
To check whether they can get a certain amount of money. Yeah. But it’s easy for the people to see how much a stake is really worth. Right there, there could be some calculations that you could do and maybe there will be a calculator on that website on the DEX in the future, where it is useful, we will put a calculator in there so people can do their math and consider whether it’s a good price or not. So you have to somehow value those stakes, right? Yes, because it’s obviously locked money. And, for example, your stakes, they have a TREX in it, so they earn more rewards than others.
So maybe you don’t wanna stake yourself. Maybe you just want to buy a stake with a TREX, for example. And then you can compare those stakes. And when you use the DEX as a buyer, you are probably doing some of the sellers who are offering their stakes a favor because obviously they don’t want to do that for fun.
They need to sell something, yeah, before you go buy tokens and stake them yourselves, or you might consider buying a stake on the deck, but as this has not been done before in other protocols I think we’re gonna wait and see how it all plays out. I don’t know. What do you think?
Kelly: Yeah, I think so.
What I’ve been thinking about this a lot and I keep getting myself in a knot, but it seems like right now, because of the price, because of this requirement that 10% of the staking duration must have passed and because the price has been going down so much, the longer, more valuable stakes that were, that have been made that would qualify to go up on the DEX right now cost those people a lot more money to make so they’re not likely to be less expensive when somebody’s coming in on to buy the stakes.
It seems to me like right now, or at least on day 111, when the Stake DEX opens, unless something happens with the price and it goes way up again, then it seems like it would be more beneficial from a cost perspective. Even considering the TREX right now, given how much the price has fallen for someone to just make the stake themselves rather than buy the stake, I just don’t see right now the price action working in favor of buying and selling stakes on the stake DEX.
But I can see in the future when price is appreciating that, that’s when the DEX will really shine because people can sell their stakes for much, much more than they. Then it costs them to make them. Yes. If they bought there, if so, for example, people who are buying and staking right now in a hundred more days from now, or 200 days from now, or a year from now, that stake deck is gonna be extremely lucrative for all of the stakes that people are buying and making right now.
Because the price is so low and the price will likely be much higher in the future. So that’s when I think the stake deck is gonna shine. I think I’m a little, I’m very curious to see what happens when it opens, because it’s gonna be mostly novelty and curiosity based right now rather than financially motivated.
Because I can’t see any financial motivation right now to either buy or sell on the DEX other than just because we can and because it’s interesting and it’s cool. And maybe for really short, shorter duration stakes, or as you said, like maybe really short duration stakes that were just made, like the one I have here that was made with a T-Rex.
There might be some threshold where it’s actually worth it for somebody to buy it rather than to make the stake themselves if they don’t wanna buy a T-Rex, for example.
Thomas: Yes. Yeah. Maybe we should also mention that we all have not all of us, but many of us have already used the DEX.
When we tested the protocol on the test net. Yes. And there were some stakes to, to buy and to sell and we could see that it all worked very well. That’s what I thought. And I found it very interesting at first. Yeah, But you will see how it all plays out in terms of strategy and maybe price will influence the price.
And because when you can buy a stake, you don’t have to buy the tokens. So that’s price neutral when you just sell and buy stakes. That’s what I think because Frank, imagine you have tokens and you need money. What do you do? You could sell your stake. You could end your stake or and sell your tokens then, or you could just sell the whole stake, which is neutral.
And the other guy who wants the tokens has to buy them. But he could as well buy a stake, which is neutral. So I think the DEX as a whole are maybe price neutral. What do you think?
Kelly: I think that’s right. I think that’s right. I think we might see if there’s desperation on both sides. We might see people buying stakes and if they’re.
If they’re revocable, then just ending them and selling them, we might see that. I don’t know. It may not make financial sense to do that right now. We could see that in the future though, we might see people buying stakes just to sell the tokens. So I don’t know. I guess we’ll have to see
Thomas: anyways.
Yeah, what we wanted is to have a place with a decentralized exchange for the stakes, which just brings more flexibility to the people because all the taking and locking up of tokens is of course very good to, to lock up tokens. So there may be less circulating supply and yeah, that is maybe good for the price and all the mechanics that we have in those staking tokens.
But being locked up is sometimes just too hard for the people. You, just to have the option that you can withdraw your staking rewards. While the stake is active and not even mature, and you can still withdraw your stake wars. I just think this is a billion for itself. But having the DEX is really cool because you can just trade, sell the whole thing.
Sell the whole thing. I think it’s good to have that as an option. You don’t have to use that. But it’s an option if you need to. Yeah. So what we wanted to make is this decentralized exchange and basically make it for free. So what we did there, in terms of tokens, is that you can use it for free as a seller and as a buyer, especially as a seller, it’s always free.
But when you want to buy a token you have to put, you have to calculate a fee of 2%. of the price of the stake on top, that’s the fee you have to pay. Unless you have a boost token, then it’s totally free for you. If you want to go there and maybe buy and sell some stakes, like trade some stakes, you might want to get an MREX token because then you don’t pay any fees.
So there’s an option to make it feel less for you. You just need to hold them MREX token in your wallet, which is actually I think it’s $40 or something.
Kelly: So yeah, MREX is cheap right now.
Thomas: Yes. So you could easily calculate when this deck opens and the people start training, they might want to have MREX tokens.
And there is, there’s just a supply of 10 thousands. So if 10,000 people would use this protocol and everybody wants an MREX, then maybe the price would go up. But still, if you have an MREX, the trading is free for you. And that’s what you wanted to make. Yes, cool. Okay. That’s the next part.
That’s the next part. Yeah. And I think another thing that was very important, when people want to make their calculations, they use this calculator that is on calculator.rex.io to make maybe to get a basic idea and to play around a little bit with the actual numbers, share price and so on.
And the total shares on the system, you can do some of your calculations. And you also clicked on your actual Excel sheet that you made, the calculator. . . Can we say that people, if they want to, they could make a copy of that if they Yeah, of course. Top left to the file, you just click on file and then you go to make a copy.
And this is what people can do when I think you need a Google account, right?
Kelly: I don’t know if you do need a Google account, I think anyone can make a copy, but maybe , no, you do, you’re right. Because when it does that, it puts it in your own Gmail your own Google Drive on your
Thomas: drive.
Yeah. Yeah, that’s true. That’s true. A copy for themselves. And even expand the tool, make it better. Or,
Kelly: Chase, I think you can also download it, which means you can just use it on your desktop, so you don’t need a Google account for that. Oh,
Thomas: okay. Perfect. Yeah, that, Oh, that’s very useful as well.
Yeah. Do you want say a few sentences about this tool? Yeah, I thought there is also something, the actual sheet that we have there is called Baseline 10 year, and I can see other sheets on the, on, on the bottom right.
Kelly: Yeah. So I have a little, I have a little story that I designed to just answer your question about why it is that I prefer the 10 year revocable stakes.
Yes. Which I thought we could just walk through, but if you think we’re like already running too long, then I don’t need to do that. But if you’re interested, I can talk you through it.
Thomas: I, I would suggest let’s just do that. Absolutely. Just go for it. Just give us 2, 3, 4 minutes on that because I think that’s very interesting.
If
Kelly: 2, 3, 4 minutes probably won’t cut it probably need more like 15 or 20 I would imagine.
Thomas: That’s fine. It’s okay.
Kelly: Okay. , I mean it cause
Thomas: it’s staking strategy and why Yeah. So has to make up their own minds. If you are not. In crypto for 10 years in the future. I don’t know.
Everybody’s in a different situation, but I think it’s very interesting what you’re gonna say now. Just go .
Kelly: Okay. And the way I always like to approach these things is to just make calculators that kind of reflect how my brain works. So I was curious given these choices that we have here for staking and all the different parameters, it seemed like there were quite a few different moving parts.
And if I wanted to just stake 10 years, do I wanna make that revocable irrevocable? Is it better to have an irrevocable stake that’s shorter or a revocable stake that’s longer? What, how do I make those comparisons? So I built a tool for myself that allows me to at least. This is a sort of a back of the envelope thing.
It’s obviously not rocket science because we don’t know we really don’t know what’s gonna happen in the future. But I wanted to create columns for myself for all the parameters that are the moving parts in this scenario. Our moving parts are what is the apr, and the APR is determined by your staking duration and whether or not you made your stake with a T-Rex and whether or not it’s revocable or irrevocable.
So that’s the apr and that’s what this calculator is. Great and easy to help get a baseline for. And I also, I just wanted to give myself a sanity check because I, I kept feeling intuitively that this 10 year revocable was the most flexible and the most lucrative option. So for me, That’s what I created as a baseline so I could compare all of the different things with that and to understand how that performs versus some other scenarios.
So my baseline is a 10 year revocable stake. And so the parameters that I set at the top I can set different parameters here if I wanna see like a different amount of initial principle or a different initial Rex price. I used it. This is yesterday’s price because I made this yesterday. And I used the share price from yesterday.
I might have changed a bit. Today, 1 0 3 4 7 1 0 3. Nope, it’s still the same share price, so that’s good. And so you can just enter in to the top of the sheet, what your APR is, what your principal is, and the price of Rex and the share price. And then you can also enter in here how you think those different parameters are gonna change with time.
And so for my baseline scenario, I was interested, let’s say the Rex price doesn’t go up at all. What’s gonna happen to my investment? So my Rex price appreciation, I have set as at zero and my share price appreciation, though we know the share price is gonna go up, that’s not that’s not Maybe that’s like for sure.
So I just used the share price appreciation that we’ve already seen. And then I cheated a little bit and used it because I didn’t know what’s gonna happen to our share price when auction’s in. So I used a similar step function for the end of auctions in my assumptions on my baseline that at the end of auctions for which for us is on day 22, share price is gonna go.
That much? No, I Oh, you don’t think so?
Thomas: No, this will not happen because we don’t have a big payday programmed in a way where that hex this example of Hex did it. So that’s what they call the big payday right there. And they tokens and blah, blah, blah, blah, blah. So that changed indeed the share rate, and this will not happen in Rex.
Indeed, the share price can rise by ending stakes, which is true. And then, there will be no such step in Rex. It will be almost linear all the time because it is capped to what has been earned from your principle in terms of the duration that you said. The very first rec stakes that have ever been created.
They will have the best APR when you calculate that to the, to any random point in the future. And so that will be the share price then it is capped. But anyways any other staker who will end his stake then will, even if your ending of the stake does a share price rise and this catches the next guy who’s doing that is rising the share price to what it should be that day.
So basically in Rex, the share price will not have this big step in it, but fries constantly just wanted Okay. So you can, actually
Thomas: Go on. I just wanted to add this information so you can assume that we don’t
Kelly: Oh, that’s good.
That’s good. So obviously this is a big unknown, so everything that I’m saying you need to take with a grain of salt and we would need to actually like, Put numbers in that are realistic. So it looks like you said, I think you said earlier in this call that you thought that maybe the share price would double by two years from now.
Is that what you said?
Thomas: Something like
Kelly: that. Yep. Yeah, I think I might have underestimated the share price increase then, cuz it looks to me like if I’m looking at my numbers here at this column E, here is the share price and it looks like I’ve, by two years from now it’s looking like it’s only up to 0.13.
So I may have underestimated the share price increase in my models. So definitely take that with a grain of salt if the story will be similar, but the details of the breakpoints and the timings might be obviously different if the share price increase assumption is incorrect. I think I’ve put that 4% everywhere in all of these tabs.
Yeah. I’m sorry, point, 0.04. Percent share price appreciation from what you’re saying, it sounds to me like maybe that’s a bit low of assumption, so you’d wanna actually put the correct ones in. I won’t change it now though, because I’ve actually got highlighted rows that would get messed up if I change the break points now.
But I will, I’ll try and update it to make this a better place for people to start with. A more realistic, but let’s just say that their share price goes up this slowly. Because the basic mechanics will be the same. It’s just the timings will be different. Okay.
So what we’re looking at the, in the baseline here is that, we have the date here, so every day I’m assuming right now that our re price is not gonna change. Obviously that’s extremely conservative. I think the price may go down a little bit during the rest of the auctions, but is likely to just go up afterwards.
So I think this is a quite conservative scenario. I tried to make it realistic but conservative and that my initial principle stake is just a hundred dollars worth of Rex, essentially $110. So you put in $110. This is the share price. If you stake that without a T-Rex, you get this many shares, 36 million.
If you share, if you stake it with a T-Rex, you get 45 million shares. So this is the number that we’re, that we just wanna keep in mind. That’s how many shares our stake has, and with that many shares and with the T-Rex and all of that, we get an APR of 46.1%. And I’ve taken that APR basically from.
Calculator here. And then and then I have a column here where I just calculate what percentage of my initial Rex my initial stake is earned each day. So as you see, it’s growing and growing as time goes on. And then I convert that to, to How much Rex you have that you could withdraw if it’s a revocable stake.
And then the dollar value of what’s revocable. And again, this is, this baseline assumes no, no change in price. So if we go in time and we look at this column I here, which is the percentage of initial res earned it, we can go to see at what point will I have exactly as much as I could withdraw a hundred percent of what I put in.
Obviously it’s gonna be a little more than two years. If it’s a 46%. So on 25th of November, 2024, we reach a hundred percent of what we put in. And theoretically at that point we could withdraw that Rex and And just basically have our principal back. Clearly we wouldn’t do that, but we might wait a little bit longer and we might after it’s a little bit more than that, we might pull some profits and then put back in what we need to put in.
So I wanted to figure out what point we need to get to where we could put it. We could pull everything out and then just put back in and get exactly the same number of shares. So this calculator I input this date, I just found the point, which is around 173%. Of the initial principle that’s come out.
So you wait till past the point where you get to a hundred percent and go to, If you go to 173% given this share price increase here, it means then if you would pull out, you put in 110. But if you pull out $191, or this mini share is 173,000 with this new share price, that gets you 45,000 shares. So that’s what we started with.
So you could, this would be taking no profits, but just literally pulling out and then creating a whole, a new stake with the same number of shares. And starting over. This is a compounding of sorts because then you have this principle that is not earning any interest. The old principle. So this is a new stake that starts with a principle of $191 and 173 or 1.73 million shares or Rex tokens.
Instead of 1 million Rex tokens, it takes 1.7 million Rex tokens to get the same number of shares cuz the share price has gone up. But you also have this dead stake, what people call a dead stake. It’s called a dead stake because the principal is still there. You’ll still be able to withdraw a million res in 2032, but it’s not, it’s no longer that stake is no longer earning any.
But this new stake that you’ve put in is I should say rewards not interest. It’s not earning any rewards, but the new stake is earning rewards. So this is just put to the side. You forget about it. In 10 years, you get a million res back out. But in the meantime it’s not earning anything.
So now if you’ve just literally put back in to get the same amount of shares then you get to the end of 10 years, you might do that one more time when it again reaches 173%. Did I do that here? Yeah, I did that again. So then you have two dead stakes essentially. And at the end, you have, at the end of 10 years, you have the two dead stakes, which you.
End early or you can just wait longer for them to end naturally. But if you ended everything early, cashed out, and and you collect this $219 of rewards on the third stake, so you’ve now got basically three stakes, two that are dead and one that’s active. And at the end of 10 years, if you lit, rush everything out, your earnings with no price appreciation at all, your earnings are $853 and 19 cents on an initial investment of $110.
So that’s like a baseline case where there’s no no profit taking along the. Now if you compare that with a 10 year irrevocable stake, because you wanna say, Okay, what would it be if I just, instead of making it, it revocable and doing all that compounding, what if I just made that a 10 year irrevocable stake?
So we look up here at the price. Let me just check. Are you guys still with me? Just want us, It’s been quiet, so I just wanna check, make sure, Are we still connected? You with me, Thomas? Yes, of course. Okay, good. Okay so let’s just let’s just look at the 10 year irrevocable stake and to compare it with this baseline 10 year revocable stake that’s been compounded.
So if you look at the 10 year irrevocable stake you’ve got with the same assumptions, the same share, price, appreciation obviously that’s not even gonna come into the calculations here because we’re not gonna be doing anything with buying or selling shares along the way cuz it’s irrevocable.
Now we have our irrevocable max is higher, obviously at a higher APR because of the extra shares you get when you stake irrevocably. You can see here, That effect there makes our APR higher, and we start with the same initial principle, the same price action, the same share price. All of that is the same, except the only difference is that this is irrevocable.
So we don’t do anything along the way, and we go all the way down to the end of 10 years. And what do we see? We see our 10 year earnings are $747 and 87 cents. So already a 10 year revocable stake will make more in 10 years than a 10 year irrevocable stake. Even if you’ve pulled no profits along the way, because of the small amount of compounding that you can do after you reach roughly 170% of your initial.
Principle, of course it’s gonna be more than 170% if our share price increases faster. So that is definitely something to keep in mind. But let’s just have a look at our. Then if we take, instead of our baseline situation where we, what we did is we waited until we would get exactly the same amount out that we would need to put in.
Whoops, that’s the wrong line. The this line is here. So where we pulled out exactly what we would need to put back in, in order to get the same number of shares. Instead, what if we went longer than that so that we could pull some profit and then put the same amount in and with the same amount of shares. So I call that my baseline profit model.
So instead of waiting until 170%, we wait until five years. So exactly five years from now, we are at 230% of our initial principle. We haven’t done anything else up until then. What happens is we can pull a profit of $22. Which is about 20% of our initial investment. And then we can put in what we need to put in to to get the same initial shares number of shares.
So we’ve got now a dead stake and we’ve got some actual money in our pockets after five years. And we’ve got the same, we’ve got a new stake with the same number of shares that’s earning the same apr. And if we do that over 10 years, I forgot if I put, I didn’t, I actually didn’t put the profit in here because I wanted to then compare this over, because in this case, you would be doing this in order to get more money.
So in this case it may not stack up very well against the 10 year profit, but it would give you access to your money sooner, which most people want because who knows what’s gonna happen with crypto in 10 years. And so then I was interested to see, okay, how does this 10 year revocable stake baseline profit model stack up against a five year irrevocable stake?
Cuz if you’re gonna do this, why not just make a five year irrevocable stake? Let’s have a look. So in this case, we have in 10 years, with a 10 year revocable stake, after five years, we’ve earned this much 254 dollars. And in, in earnings, if we look at a five year irrevocable stake and go down to that same end point.
It has earned less than our 10 year revocable stake after five years. You could even think about not only just the rewards themselves, but you could think about the if you added into this rewards amount, half of the principle if you if I. Having your stack stake be dead, you would just end your stake.
You would then also have, you’d have penalties, but you would have half of the principle that you could cash out on as well after five years. So even comparing a 10 year revocable stake after five years with a five year irrevocable stake, the 10 revocable stake wins hands down. So this was interesting and it’s the baseline story, but then it gets even more interesting if you think about, what happens with the, if the price goes up, which we think it’s gonna do.
But before I go into the, what happens when the price goes up, cuz that’s where it gets really exciting. Do you have any questions, Thomas?
Thomas: Nope. I think it’s a very good explanation. Okay.
Kelly: Okay. So then I’m like, okay, what happens if instead of assuming a zero price appreciation, what happens if we do the same scenarios but where the price is going up just by 0.5% every day. So what that looks like in practice is the price is going up and it seems slow at first, but by five years from now, we are at one penny.
When I did that, I was like, Wow, okay. That I had to cap it at a penny because, or sorry, at a dollar because I thought it doesn’t feel like a dollar is a lot for it to go up to a dollar in five years. That’s a kind Optimistic scenario.
It’s not unrealistic, but it’s quite optimistic. But I capped it there because I felt like to, to keep, to have it keep increasing, like it would get us to a Rex price of like $10,000, which seemed in 10 years, which it could happen. But I didn’t wanna, I didn’t, I don’t know. That just seemed a bit outside of possibility.
So what I did in this scenario for the price increase is up until a year from now, it’s increasing by whatever point what did I. 0.5% per day. But then it gets capped at a dollar. So that’s all fiction. And the reason why I like to build these calculators, because I can try out any fiction I want.
So this is what it looks like though in this fictional scenario where the price in the first five years is going up by 0.5% a day. And then and then it gets capped. So the baseline scenario where we just wait until 170% and put it back in. What happens then is we have the profit that we get to take that we don’t, still don’t take any profit.
But in the end, what we’ve made in 10 years is the 7 million, $7.7 million. And the equivalent irrevocable scenario is only 6 million. So the difference is again, just about a million dollars between the revocable and the irrevocable. So it’s the same percentage difference. But then where it gets super interesting is in this baseline profit model where we wait five years and in five years, what we can do, where’s my five year mark, where it’s, So in five years if price has gone up, Then we’re looking at like on a, on an initial investment of $110, we’ve we’re looking at being able to pull a profit of 200,000.
So there’s your car, whatever car you might wanna buy in five years, you could buy a car and put back in a new stake that would have exactly the same number of shares that you had before. So when price, when we look at price appreciation, which Theos of Rex is designed to achieve, I don’t know if it’s going to achieve 0.5% a day growth.
But if it did and Rex went to a dollar in five years on a $110 stake, you’d be looking at a profit If you made it 10 year revocable of $203,000 in 10 years without any loss of shares, because you could turn right around with the rest of that with the rest of this. 230,500, sorry, 2.3 million shares and put them back in.
Obviously again, the date of this might change that the amounts would change if the share price is increasing more. But in this scenario, the share price has gone up to 0.2. Like it’s gone up, it’s doubled in five years rather than doubling in two years. Like what you said, Thomas. So obviously this is variable depending on how the share price, yeah, performs.
And then if we compare again, the last thing is if we look then at what would our profit be? So if we, instead of just pulling out only the profits and putting back in the rest, retaking the rest, if we sold the whole thing half of the half of the principle and the whole, and all of the rewards, our profits.
After five years, our $2.782 million, assuming you just, you were done with Rex, you didn’t wanna put any more in, and you just wanted to walk away with your earnings. That’s what you’d be looking at. If we have that much price appreciation. So let’s assume that the price appreciation is 10% of that.
That’s still an amazing profit on a very modest initial investment after five years with a 10 year revocable stake. If we look at the five year irrevocable stake in that same price year price increase scenario, the earnings are 2 million, which still is not shabby, but you can compare 2 million against 2.782 million.
That’s just an extra cool 780, $80,000 that you make in 10 year. Revocable stake strategy. Wow. This is the long answer to the question you asked me in that ama, like, why do you do that? This is why I do that. Because I think if you take a long view and you look at the long view compounding possibilities with a 10 year revocable stake, this is what you end up with.
Thomas: Okay. That was really interesting and really impressive and really enlightening. I really enjoyed that. I hope all the viewers can easily understand that. I think it was very understandable from my perspective. So I hope everybody understood that if not, we will all have the chance.
Thank you very much for sharing that with us, Kelly. That was really good to see that Yeah, you will all have the possibility to meet all of us, Kelly, and me and all the other Mexicans. And there are a lot of bright guys, right? In our community channels, in our discord, of course, on Telegram.
And you are all invited to meet us on Twitter spaces right now. So we will now share a link for all of you. So if you want to join, just meet us on Twitter and yeah, see you there. Thank you so much again for , all the explanations. Kelly I think we’ve covered most of the things.
I think if people have questions, they can write comments or just get in contact with us so we can maybe at some point in the future make another video. We can still talk about this open thing with the share price development in the future so we should absolutely add that into your Excel sheet as well. Because it’s quite predetermined how that will play out, so we should absolutely put that in there. So thank you everybody for watching our today’s talk. We hope it was very interesting and it helps you creating your personal staking strategy. As you could see, Rex comes up with a lot of features, possibilities, and possible strategies.
We are quite sure that you will find yours. Yeah, what can I say? Please consider all of our talks and as our opinions and views where not financial advisors. So this is not financial advice. Thank you for saying that. That’s always important to mention that, right? Yeah. Perfect. Let’s all meet do you want to say something, Kelly?
Kelly: I thought we might just invite my sister who might be standing by to see if she would like to join the conversation and see if she has any questions for of what we’ve talked about or things that we might have forgotten to mention. Hi, Rebecca. Hello. Can you all hear me? Yes. Hello. I don’t really have any specific questions.
Rebecca: It’s all very interesting, Kelly, and I like seeing how your mind thinks. But I don’t think I have anything specific or anything more to share. Do you have any other staking strategies that you like to use or that you’ve been working on? When thinking about how to invest, no. But I, like you have gravitated to almost exclusively doing tenure revocable stake.
Just seems like it offers the most flexibility. It’s interesting seeing the numbers, reflecting that sort of intuitive thing in, in very literal ways, So thanks for taking the time to put those together.
Thomas: I don’t have anything more. Yeah. Thank you. Thank you. It’s nice to have you here.
Rebecca: Thanks. It’s good to be here. Thanks for taking the time to explain all of this too. It’s helpful. Sure.
Thomas: Okay, perfect. Yeah, maybe we will find somebody on on Twitter in a few minutes and for explaining their strategies so we can discuss all of that. Rebecca Kelly, thank you very much for having me say that and for the talks.
I found it very interesting. I hope it helps. And thank you everybody for being here, for being into Rex, of course. And
Kelly: thank you Mex Rex for putting this together. Yeah,
Thomas: thank you Mex Rex , I forgot to mention you the last thoughts, so double from my side. Thank you. Thank you, . Okay, perfect.
See you on Twitter. Have a great day, everybody, wherever you are.
Kelly: Bye bye. Bye bye. Hi.
The REX protocol is an example of the potential of Decentralized Finance. It is a next-gen savings account with built in investment options, giving access to everyone financial products that were previously controlled by centralized authorities.
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