Many have bought the CMT Cube with the intent on eventually getting more CMT. How does it actually work and what is the return on investment? Let's investigate how we could calculate the return based on the information we have so far from Cybermiles.
Below is a diagram of how the machine would work. Since Cybermiles is a Delegated Proof of Stake blockchain (DPos) and not Proof of Work (PoW), CMT Cube holders are not actually 'mining' CMTs but being rewarded with minted CMTs for staking CMTs. The CMT Cube serves two functions 1) elects which Validator to stake with and 2) acts as a CMT wallet which locks CMT from trading during the staking period. To be able to trade your staked CMT again, there is a waiting period of 7 days after notifying the Validator.
So, how much of a return can a CMT Cube owner expect? There are three main factors which influences this:
- How many businesses are using the CMT Blockchain and how many higher value transactions there are (everyday user payment transactions are free of charge)
- What percentage of voting rights does the Validator you have chosen have
- Validator's total staked CMTs (including all staked tokens from its delegators)
Above is a table representation of the potential of CMT to be earned per 100 CMTs staked on the CMT Cube per year. If we take the average as a possible result, this will result in 13 CMT per 100 CMT staked or approximately 13% return on investment (ROI) per annum. It is worthwhile noting as well that it is not simply 13% ROI in tokens on staked tokens but also the potential appreciation of the value on the value of the original tokens staked. For example, if CMT tokens were $1 upon staking, it may be worth +X% more in a years time therefore increasing both the staked value and minted value of your CMTs. So at the end of the day, it comes down to your conviction in how much traction CMT will have and your ability to HODL on to realise maximum benefits from your CMT investment. For added motivation, your CMT Cube purchase refund from Blocktonic will be proportionate over 300 days from the day you start staking your CMTs and your Cube must be switched on and continuously staking the tokens for the whole refund period. This process can only begin after the CMT mainnet launch towards the end of 2018.
Note: All opinions expressed in this article are the author's own and worth sharing however the author is not a financial advisor and the opinions expressed in this article are not meant to be financial advice. Please do your own research before making any decisions. If you appreciate this article, please upvote as it is the best motivation to continue writing on CMT.