Crypto Traders Are Earning 165% Yields By Staking a Token Named After Elon Musk’s Pet

Over $55 million of floki [FLOKI] tokens have been locked on the blockchain’s staking platform.

Floki was released in 2021 as a meme coin named after Elon Musk’s pet, Shiba Inu, but has morphed over time to position itself as a serious decentralized finance (DeFi) project. Decentralized finance is an umbrella term for lending and borrowing carried out on the blockchain without the use of intermediaries.

The 1.8 trillion FLOKI represents almost 18% of the circulating supply, and most tokens are expected to be out of circulation in the coming years as traders continue to stake funds to earn annualized rewards of up to 120%.

The staked floki is used to reward holders with token (TOKEN), a sister project that allows users to tokenize real-world assets (RWA) that was released in the last week of October.

RWA refers to a physical asset, such as real estate or a car, digitized and made available on DeFi applications. Several analysts peg RWA as a “trillion-dollar opportunity,” as such products can theoretically allow anyone in the world to trade or invest in any global asset – which is currently a complex process governed by stringent business and financial laws.

The yields range from 51% to over 165%, depending on when those tokens are locked.

Floki developers previously told CoinDesk that they expect tokenization to become a $16 billion market by 2030. Users can acquire TOKEN from decentralized exchanges – where it has reached a $40 million market capitalization – but upward of 50% of the supply can only be gained by staking FLOKI.

Incentives will be offered to users who use the protocol to launch their tokens or smart contracts. A percentage of TokenFi tokens will be set aside to reward protocol usage based on daily activity – which may create a flywheel effect that attracts users who keep using the platform for even more rewards.