Beware of VC coins with staking models, whether it's node staking or liquidity staking.
The project team actually allows investors and the team to stake tokens that should be locked up, and the rewards generated from staking can be freely sold and circulated, commonly known as false locking.
Importantly, this creates more selling pressure than simple unlocking. For example:
Assuming the team or institution has 100 tokens, with a 1-year lock-up period and 3 years of linear release, and a staking annual yield of 12.5%.
If the team or institution stakes these 100 locked tokens and earns a 12.5% annual reward, they can receive 12.5 freely circulating tokens in the first year, equivalent to receiving 50% of the tokens linearly released each year during the lock-up period. The longer the lock-up period, the more tokens the team or institution has, leading to greater selling pressure.
This is a betrayal of the community. They typically do not publicly disclose the rights to stake locked tokens, while promoting the project's prospects and team lock-up, they simultaneously sell tokens to the community, resulting in a token curve that is highly similar, with a drop of 90%.