At what rate is every balance on the Blurt blockchain automatically inflating? How much interest do I make on my 1,000,000 BP every minute? I decided to manually calculate the interest rate and answer these questions myself, although (spoiler alert!) the posted rate of inflation here in 2.17%.
I'm at exactly 1 million BP, which makes the calculation simple. In fact, that's why I'm doing it today : P
Here's my balance at the start:
And here's my balance after 100 seconds:
And after 200 seconds:
818 - 752 = 66
752 - 683 = 69
Average = 67.5
So the rate of increase is 0.0675 BP per 100 seconds.
0.0675 BP / 100 s
= 0.000675 BP/s
= 0.0405 BP/min
= 2.43 BP/hr
= 58.32 BP/day
= 21287 BP/year
At 1,000,000 BP I am earning approximately 21287 BP per year, an annualized percentage compounding interest rate of 2.13%.
Indeed, the wallet page shows the current rate:
My manual calculation shows the Blurt blockchain is paying out compounding interest as intended. Not that it was in doubt, but sometimes it makes sense to double check.
NOTE: Those 21287 BP, at current price, are worth about $64. That is the "passive income" on 1 million BLURT - $64 per year. After 3 years, 1 million BLURT would appreciate (through compound interest) to 1,066,000 BLURT, which is a profit of $198 ($66 per year) on a $3000 investment.
Going up!
Are you aware that EVERY balance (every bit of BLURT that exists) is constantly inflating at this magical rate? It's not just your Blurt Power. Notice in the images above, my delegation amount is also increasing. But that's not all! Liquid balances (how much BLURT you have just sitting in your account) and amounts in "savings" are also inflating like this. Even pending payouts (rewards that haven't yet been paid out to authors) are inflating at exactly the same rate. EVERY fraction of a token on the blockchain is constantly, automatically, and silently multiplying... 24 hours a day, 365 days a year.
Is that a good thing? Should the inflation rate be higher or lower than it currently is? Those are questions for another post. For now, we have evidence that Blurt's inflation rate is functioning as advertised, which is a good thing.
I'm curating with over 1.04M Blurt Power... That's a good thing, too!
DRutter
What an awesome post buddy!!! I didn't even know we were getting interest!!! 🍀🤗🙏🏽🌞🤣🤙🏽💰💸💵💲💳💶💴
We learn new things about this blockchain all the time. That's one thing I like about it - it's simple enough that you can get started relatively easily, but complicated enough that there are nuances which take years to fully understand. Something for the beginner, the expert, and everybody in between : ))
Wow you really spent time to check. That’s a good thing to confirm. 👍 This is a good affirmation of having a passive income! Thanks for sharing.
Thanks! Yeah, it's a fairly easy calculation, but I think it make sense to confirm things are working as advertised. I've heard that interest helps pay for blockchain costs like the witnesses and proposals, so while it seems small, it has important functions.
Thanks for this well structure explanatory post. In fact I am in the dark not knowing I earn interest on all this areas.
I believe that's just another side stream of earning on blurt which for me I can say it's a bit ok for people with large amount of blurt would earn more.
On a second note, if someone like you having around 1 million BP earn that in a year, I wonder what people with low BP would earn. I believe the end goal is for everyone to try and have large bag of BP to earn more.
That will mean buying more blurt token to increase one account. I have started trading and my profit I have decided to use it to buy more blurt so i can power up to build my account.
Juts to be at the look out to buy every entry at the low price e or when ever Blurt price drop. Keep up the good work buddy
At that rate, how many BLURT would someone need, to earn $50,000 a year at current prices?
50000 USD x 1 BLURT/0.0028 USD = 17,857,143 BLURT
To earn 17,857,143 BLURT in 1 year at 2.17% interest, it would take a balance of 823 million BLURT.
I only have 822 million BLURT to go!
Wow! That's a lot of BLURT. Somewhere around the entire supply, I think.
But that's to earn 50k a year, doing absolutely nothing but cashing it in and spending it.
You'd need $2.3M worth of BLURT to do that.
In other words, some random crypto millionaire could load up on BLURT tokens, then live off the passive income generated. That's not absurd to imagine. And it would really boost the price, too.
Speaking of the price, that's likely the major factor for investors, not the interest. For example, BLURT could have a +300% year, easy. It could also have a -50% year. The 2% interest is probably a minor consideration for most holders.