In this short article, I will explain how the mechanics of SLT are unique in terms of passive income compared to other tokens based on inflation. Especially in regards to how buying at a low token price is your chance to lock a future APR rate.
Token ABC:
I will start by making a parallel with most of the other Token's staking mechanics, which gives a fixed return in terms of a Token %. For example, a 10% APR inflation staking reward means that in a year, for every Token you stake, you will receive 0.1 Token.
Most tokens that you can stake usually work this way, where the supply of that token is inflated and redistributed to stakers.
Let's take for example an imaginary 100$ Token called ABC, which brings 10% APY when it is staked.
Staking a 100$ ABC bringing 10% APR would give you 10 bucks a year.
Once that ABC falls to 10$, you are now receiving 1 buck a year, and if it jumps to 1000$ you now receive 100$/year.
But, in the end, you always receive 10% APR, whether you buy the token at 100$, or once it hits 1000$.
Token SLT:
As for SLT, Bear or Bull, you get the same return or higher as more assets get listed.
SLT rewards are in no way influenced by the current crypto sentiment, the rewards are backed by how many Real Assets are getting listed and traded on Smartland's platform.
Staking rewards are coming from 33.33% of Smartlands fees, that's it. A direct bite of Revenues, not Profits…
Now, let's assume a 10$ SLT (currently it is sitting at 8$). Let's say in the 1st year of Operation Smartlands tokenizes around 1 Billion $ of assets (Smartlands near-term goal), this would approximately mean that for every SLT you hold, you receive 7$.
If you bought your SLT at 10$ you are getting a 70% APR.
Now imagine you onboard your friend after that year and he buys some SLT at 100$.
If we assume no extra growth and they also tokenized 1 Billion $ on that second year and distributes 7$ / SLT, your friend is getting 7% APR on his purchase.
Conclusion:
Remove yourself from the Token resell value and only think about passive income, anyway, that's the whole point of holding SLT.
The earlier you are, the lower your purchase cost of SLT is, then the better APR you are setting yourself for in the future.
Now as SLT grows, imagine when/if they can tokenize over 1 Billion / year. Every 10$ SLT you purchase sets you up for a crazy return on investment for the future.
Think about passive income, not resell value. You have that chance right now, take it.
Joke, not a financial advisor.
TL/DR: The return is not relative to the invested amount, but the number of tokens.