You can earn rewards just by holding tokens. MoonRat is an innovator and the first to bring the Earn by holding mechanism to holders on the BSC network. Let's see the comparison table!
Staking
(e.g. Tezos, Cosmos, Cardano)
Earn By Holding
SMRAT, EarnBUSD, EarnCake, EarnBake
❌ User funds might be slashed based on network activity
✅Your funds never leave your wallet, and there's no risk of losing them. It's the safest way
❌ Requires high uptime and guarantees from nodes
✅No special hardware is required. Users just need to hold token on your favorite wallet
❌ Funds received from staking generally sold to offset maintenance and uptime costs, creating potential for market sell pressure
✅ Earnings are paid in other tokens like
BNB, BUSD, but the reward generating asset is SMRAT, EBUSD, ECAKE, meaning there is no added sell pressure for SMRAT, EBUSD
VIP Members get 20% more rewards than normal holders
While we were creating and perfecting the Reward Pool, we ran multiple testnets to figure out the best cycle duration for the Earn by holding feature. We even tested daily and even hourly claims with our community participants and we observed ways the pool was affected by different time frames. That is the reason why we stick to the weekly cycle that is the most sustainable cycle.
How does Earn By Holding work?
X% of every transaction is taken and added to the Weekly Reward Pool. (View Transactional Tax to know the details of X is depend on projects)
The rules of collecting Weekly Reward
Rule 1: In this waiting duration, if you continue to add more than 2% (threshHoldTopUpRate) of your balance, the waiting duration will proportionally add up with the cycle. Selling tokens does not affect your cycle.
Rule 2: But if the threshHoldTopUpRate >= 100%, the waiting duration will add up max to 7 days. This will prevent cheaters who try to add more $EBUSD at the end of each cycle.
Let pick SMRAT token as an example, other tokens follow the same logic
For example, on the first day of your cycle, you add up more 5% $SMRAT, you have to wait: 5%*7days = 8,4 hours more. That means you can collect BNB after 7 days and 8,4 hours. (Rule 1)
For example, on the first day of your cycle, you add up more 100% $SMRAT, you have to wait: 7 days more. That means you can collect BNB after 14 days. (Rule 2)
Collect Weekly Reward Tax
Collecting reward transactions will also be taxed, please read the details here