KR1 generates revenue from Polkadot staking activities
told investors that it has started generating material revenue from staking activities on the Polkadot (“DOT”) network, its largest investment and portfolio holding to date.
The digital asset investment firm said staking activities on Polkadot are generating revenue on an ongoing basis following its migration to a ‘Proof-of-Stake’ blockchain network back in June 2020.
To date, KR1 has generated a total of 530.67 in Polkadot’s native DOT digital assets while the firm also told investors that it has accrued revenue of 530.67 DOT at an average price of US $367.09 per DOT for a total of US $194,802.96 from staking yields thus far.
Staking yields that KR1 generates on Polkadot are subject to specific network conditions and could range from a minimum of 2.5% yield, up to a maximum of 40% yield on staked DOT.
KR1 said that it is currently impossible to report estimates in regard to how many DOT the Company will generate on an annual basis given that Polkadot is still in its early stages.
Current staking activities do not impose any overhead or additional operating costs to KR1 unlike the cost of mining bitcoin which can vary significantly. The group said it continues to stake a large majority of DOT holdings ‘with a trusted and secure third-party staking service provider.’
Shares in KR1 have climbed gradually over the past two weeks and were trading 65.38% higher at 10.75p during Wednesday afternoon trading.
KR1 also highlighted that Polkadot will undergo a re-denomination event on Friday where 1 ‘DOT (old)’ will split into 100 ‘New DOT’ which is similar to a traditional stock split.
It said the percentage ownership of DOT relative to total supply will remain unchanged and won’t impact the value of any DOT position given that holders will own the exact same share of the network as before.
“It’s been an incredibly exciting journey having watched Polkadot’s gradual launch over the past few months, from getting started with an experimental ‘canary’ network Kusama, Polkadot’s wild cousin, to the switch over to a permissionless Proof-of-Stake blockchain, governed by its stakeholders, and finally, yesterday’s DOT transferability that was voted in by the community,” said George McDonaugh, Managing Director and Co-Founder of KR1.
He added, “There is so much more brewing for Polkadot, from technology upgrades to follow soon that will enable different blockchains to communicate with each other while sharing the same security guarantees, to further advances in scalability and much more.
Seeing the first revenue coming in from Polkadot staking yields is a huge validation as Polkadot joins Cosmos as the second yield-bearing asset generating material revenue in KR1’s portfolio, which puts the Company on an even stronger footing for the future.”
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