Total circulation of Stader (SD) coins

By following Stader's official documentation and using on-chain data, users can estimate the approximate number of SD coins in circulation.

Jan 03, 2025 at 07:30 am

Total Circulation of Stader (SD) Coins: An In-Depth Analysis

Key Points

• Stader (SD) is a decentralized liquid staking protocol for Polkadot.
• SD coin represents a user's claim to their staked DOT and rewards.
• The total supply of SD coins is dynamic and fluctuates based on network activity.
• Stader maintains a circulating supply ratio to ensure that SD coin value remains proportional to staked DOT.
• SD coin's circulating supply can be estimated using Stader's official documentation.

What is Stader (SD)?

Stader (SD) is a decentralized liquid staking protocol built on Polkadot. It allows DOT holders to stake their tokens without locking them up for extended periods. By participating in staking through Stader, users earn rewards while maintaining access to their staked DOT.

SD coin serves as a representation of a user's staked DOT and their accumulated rewards. It is a transferable token that allows users to trade their staking position or unstake their DOT whenever desired.

Total Supply of SD Coins

The total supply of SD coins is not fixed and can fluctuate over time. It is determined by the amount of DOT staked through the protocol. As more DOT is staked, more SD coins are minted and enter circulation. Conversely, when users unstake their DOT, the corresponding SD coins are burned, reducing the total supply.

Stader's Circulating Supply Ratio

Stader maintains a circulating supply ratio to ensure that the value of SD coins remains proportional to the amount of staked DOT. This ratio is typically set to around 10%, meaning that for every 10 DOT staked, 1 SD coin is minted.

The circulating supply ratio helps stabilize SD coin prices and prevents excessive inflation. By controlling the supply of SD coins, Stader ensures that their value is backed by the underlying staked DOT assets.

Estimating Stader's Circulating Supply

The exact circulating supply of SD coins can be estimated using Stader's official documentation and on-chain data.

1. Retrieve Stader's Circulating Supply Ratio: The current circulating supply ratio can be found in Stader's documentation or on its website.
2. Calculate the Number of Staked DOT: Access the Polkadot blockchain explorer or Stader's dashboard to determine the total amount of DOT staked through the protocol.
3. Multiply by Circulating Supply Ratio: Multiply the total staked DOT by the circulating supply ratio to estimate the approximate number of SD coins in circulation.

FAQs

Q: Why is the total supply of SD coins dynamic?
A: The total supply of SD coins is dynamic because it is linked to the amount of DOT staked through the protocol. As more DOT is staked, more SD coins are minted, and vice versa.

Q: How does Stader control the value of SD coins?
A: Stader maintains a circulating supply ratio to ensure that the value of SD coins remains proportional to the underlying staked DOT. By controlling the supply, Stader prevents excessive inflation and stabilizes SD coin prices.

Q: How can I estimate the number of SD coins in circulation?
A: To estimate the circulating supply of SD coins, you can multiply the total staked DOT by Stader's circulating supply ratio.