Kanga Exchange offers a number of options for earning passive income. One of them is Proof of Stake, i.e. the possibility to stake tokens and receive prizes. On our exchange you will find many PoSes at your disposal (the list of all can be found after logging in to your Kanga account → PoS tab → after selecting the “all” filter), but one of them is special – KNG PoS offering the autotransfer option
How does autotransfer work and what are its benefits?
Autotransfer PoS automatically transfers the daily rewards for staking KNG tokens into your PoS account. This means that rewards automatically go to your PoS account, rather than going to your wallet. This is a very attractive feature for several reasons.
First, with autotransfer, you don’t have to manually transfer your rewards to your PoS account. This function does it for you, you don’t have to worry about it.
Thanks to this, your PoS balance is increased every day by the value of the prize, which means that when settling the prize, an increasing number of KNG on your PoS is taken into account – thanks to this, you have a chance for higher and higher prizes. This is an example of the practical use of compound interest.
However, the most attractive benefit of autotransfer is a bonus to the reward that grows every day. For each day that autotransfer is active, your PoS reward is increased by the “current bonus” value.
How high is the bonus? What conditions must be met to receive it? To understand this better, let’s take a look at a few principles of how the autotransfer and the bonus work.
Autotransfer and bonus rules
- Autotransfer is available only on the KNG PoS.
- Autotransfer can only be turned on when the funds are deposited and visible on the PoS account.
- The daily staking reward is different each day – it is dependent on the sum of all fees and daily commissions from services on the Kanga platform; which are distributed in proportion to the amount of KNG deposited to PoS by each user, the amount may vary from day to day. The reward is increased by the bonus value and is paid out together with the base reward.
- When autotransfer is on, the rewards automatically go to your PoS balance.
- When autotransfer is off, rewards automatically go to your Kanga wallet.
- With the autotransfer on, the user’s bonus to the reward grows every day. The bonus increases by 0.3% every day, which means that:
-On the first day the bonus amounts to 0%
-On the second day 0.3%
-On the third day 0.6%
-On the fourth day 0.9%, etc.
- It is worth noting that there is no upper limit for the bonus! In practice, this means that it can grow indefinitely to 100%, 150%, 200% and more!
- First, the bonus value is added to the number of KNG, and then a reward for staking is calculated.
- The bonus increases continuously until the autotransfer function is turned off or until the funds are withdrawn from the PoS account. After turning the autotransfer on again, the bonus starts to grow again, starting from 0%.
- There is no minimum amount required to enable PoS autotransfer.
Autotransfer bonus based on an example
We know that not everybody is a scientist or a mathematical guru, so we will explain how the autotransfer bonus works on a simple example, so that everyone can easily understand its principle.
To simplify the calculations, let’s assume that Benjamin deposits 100 KNG tokens to PoS and enables the autotransfer option.
On the first day, the bonus is 0%, so the award is calculated from the amount of 100 KNG.
After half a year, the Benjamin bonus is approx. 50%, which means that the award is calculated from approx. 100 KNG (which Benjamin keeps on his PoS) + 50% of the amount kept on PoS (in this case 50% of 100 KNG = 50 KNG), i.e. from approx. 150 KNG.
After a year, the bonus is approx. 100%, so the award is calculated from 100 KNG + 100 KNG from the autotransfer bonus, so from approx. 200 KNG.
In other words, the daily bonus increase means that your KNG staking rewards on PoS are growing! The reward, of course, depends on the daily income of the exchange, as mentioned above, however, thanks to the enabled autotransfer option and the constantly growing bonus, your prizes can become higher and higher without much effort.