<story><title>Crypto exchange Kraken to shut staking service, pay $30M fine in SEC settlement</title><url>https://www.coindesk.com/policy/2023/02/09/us-securities-and-exchange-commission-sues-kraken-over-crypto-staking-services/</url></story><parent_chain></parent_chain><comment><author>saurik</author><text>Many of these APYs are being measured in the token staked, not in the &amp;quot;value&amp;quot; of that token as might be expressed in (say) dollars. The payment is then made via inflation, which devalues everyone&amp;#x27;s tokens to give the people who staled more token. (Yes: this means that the &lt;i&gt;value&lt;/i&gt; of your money might go down even if you legitimately have 20% more of it; the market for the token at that point is a separate--yet related--issue.)</text></comment>
<story><title>Crypto exchange Kraken to shut staking service, pay $30M fine in SEC settlement</title><url>https://www.coindesk.com/policy/2023/02/09/us-securities-and-exchange-commission-sues-kraken-over-crypto-staking-services/</url></story><parent_chain></parent_chain><comment><author>Octokiddie</author><text>Coindesk offers some context:&lt;p&gt;&amp;gt; Kraken’s staking service offered a 20% APY, promising to send customers staking rewards twice per week, according to its website.&lt;p&gt;&lt;a href=&quot;https:&amp;#x2F;&amp;#x2F;www.coindesk.com&amp;#x2F;policy&amp;#x2F;2023&amp;#x2F;02&amp;#x2F;09&amp;#x2F;kraken-agreed-to-shutter-crypto-staking-operations-to-settle-sec-charges-source&amp;#x2F;&quot; rel=&quot;nofollow&quot;&gt;https:&amp;#x2F;&amp;#x2F;www.coindesk.com&amp;#x2F;policy&amp;#x2F;2023&amp;#x2F;02&amp;#x2F;09&amp;#x2F;kraken-agreed-to-...&lt;/a&gt;&lt;p&gt;Simple question: how is that guaranteed yield sustainable if not through a Ponzi scheme?</text></comment>