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Does it mean that a token is worse than others if it has a high percentage in staking?

  • Thread starter Thread starter deucher
  • Start date Start date

deucher

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I've always wondered why some tokens have a higher percentage of staking than others. I had thoughts that this token might be worse than others, that's why no one wants to invest in it, so the developers raised the profit percentages in order to attract more people to buy this token
 
I don't know, I have never though in that way. There was a time when I was investing in Axie Infinity because it was offering very high staking reward but later it staked going down and I switched to others
 
Staking rewards
often incentivize users to lock up their tokens in exchange for passive income or governance rights. A high staking percentage could indicate that users have faith in the network's long-term value and are willing to lock up their tokens rather than sell or trade them
If the staked tokens are concentrated in the hands of a few entities or validators, it could lead to centralization. A small number of stakeholders controlling a large percentage of the network's staked tokens may have undue influence over the network, such as voting on governance proposals or validating transactions.
 
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