Algorithmic Amortization

We follow the principles of fair distribution in our platform, ensuring that rewards are allocated based on real market dynamics. Our approach utilizes algorithmic amortization, a method commonly practiced in Web3 environments to balance the distribution of rewards over time. Why Algorithmic Amortization?

Algorithmic amortization adjusts the mining power of ITO over time, gradually reducing the rewards as time passes. Resources experience amortization as a natural effect of usage over time, where their efficiency gradually decreases due to wear or consumption. This is a normal process for many assets as they are actively used. However, while the resources may amortize, their overall value could still increase, reflecting their importance and scarcity in the system. By implementing this, we ensure that early participants receive higher rewards, while later participants still benefit, but in a way that balances the overall supply and demand in the market.

Please note, that your ITO will operate for 8 years, with a halving event occurring every 2 years. During this period, an amortization algorithm will be in place, which means the APR will gradually decrease over time.

Fair Distribution and Market-Based Principles

One of the core principles behind this model is fair distribution. In a decentralized ecosystem like ours, it's crucial to have mechanisms that prevent any one participant from having an unfair advantage. Algorithmic amortization ensures that rewards are fairly distributed based on when users entered the pool and the current state of the market, providing a balanced opportunity for everyone.

Why is Algorithmic Amortization Common in Web3?

In Web3, ensuring sustainable and predictable tokenomics is key. Algorithmic amortization provides stability, ensuring that the token supply isn’t exhausted too quickly or unfairly distributed to early adopters. This practice is widely used in Web3 projects because it aligns with decentralized market dynamics, allowing for long-term value creation and avoiding extreme inflation or deflation scenarios.

Benefits for Users

• Fairness: The system ensures a smooth, gradual adjustment in rewards over time, offering a balanced experience without sudden changes. Although the number of WFI tokens you earn may decrease as a result of amortization, the value of those tokens is expected to rise, creating a natural compensation. This approach keeps things fair and maintains the long-term value of your rewards.

• Market-Driven: Your rewards are based on the real-time market and participation level, making the system more dynamic and responsive.

• Predictability: Users can make informed decisions based on the predictable amortization, allowing for better planning in their investment strategies.

By leveraging algorithmic amortization, we ensure a balanced, transparent, and sustainable ecosystem for all participants.