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Re: dudeman41 post# 33214

Tuesday, 08/09/2022 11:22:16 AM

Tuesday, August 09, 2022 11:22:16 AM

Post# of 57713
Your statement or thought are partially true but not entirely. When you stake or buried tokens, it simply means that you are loaning them to someone else for the interest, the rewards that you are getting for staking or buried tokens - is actually the interest that are accrued for the duration of the loan. Same analogy as what happens when you get the credit, credit cards, mortgage etc.
When you just holding the cash/tokens-you going to have what you are holding but when you loans them to someone else at sertain % rate, then you will earn income from accrued interest (increase the original amount you have initially owned!). Simple as that! When you stake your tokens- you are locking them up for whatever period of time you desire but that doesn't mean that your staked tokens are actually locked in a safe/wallet for the duration of time. They are locked, alright! But they are locked for you, so you can't use them for nothing else but your locked tokens are used by someone else for whatever, provide a liquidity pool and/or they might be used for shorting or anything really. You just never going to know for sure what are your staked tokens are actually used for because loaners will never tell you and they not required to.
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