<p>There are many ways how to handle this and it's really up to the dApp creator.</p>
<p>But, keep in mind, that the smart contact can delegate their ADA too and earn rewards on it as well. I can see some dApps redistributing this rewards back to the users in the future.</p>

CC BY-SA 4.0
2021-05-25T00:56:38.970Z
Ah I see, I didnt know that smart contract had delegation enabled
CosmicCat
CC BY-SA 4.0
2021-05-24T14:42:02.500Z
2021-05-24T14:42:02.500Z
Marek Mahut - StakeNuts
<p>Let's say I would like to lock up some ADA in a smart contract for about 3 months. How will this compete with ~5% APR from staking rewards? Do all dApps need to provide a minimum ~5% APR just to keep up with inflation?</p>

<staking><decentralized-applications>
How will dapps handle cardano inflation from staking rewards?
# How will dapps handle cardano inflation from staking rewards?

(Asked by: username_0 on 2021-05-23)

Let's say I would like to lock up some ADA in a smart contract for about 3 months. How will this compete with ~5% APR from staking rewards? Do all dApps need to provide a minimum ~5% APR just to keep up with inflation?

**Tags:** staking, decentralized-applications

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## 1 answers

### Answer by username_1 on 2021-05-24. Score: 4 | Accepted answer

There are many ways how to handle this and it's really up to the dApp creator.

But, keep in mind, that the smart contact can delegate their ADA too and earn rewards on it as well. I can see some dApps redistributing this rewards back to the users in the future.

> **Comments:**
> **username_0**: Ah I see, I didnt know that smart contract had delegation enabled  

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