APR
How APR is Calculated for WFI
APR (Annual Percentage Rate) represents the yearly earnings in WFI. Here’s a simple explanation of how it's calculated and how it works, along with some examples.
Important Notes:
The APR is calculated individually for each participant.
Your rewards are based on the amount of ITOunits you’ve sent to mining within the current block.
APR Formula
The formula for calculating APR for WFI based on your ITOunit looks like this:
Please note that the block reward for WFI shown here already accounts for amortization. This means the impact of amortization has been factored into your block reward, and it may reduce the total rewards over time.
Where:
Block_Reward_WFII: The current reward for the block in WFI tokens (WFI you're mining from the block)
60 × 60 × 24 × 365 - time over the year (sec, mins, hr, days)
WFI_Price: The current price of one WFI token.
Total_ITOunit: The total amount of ITOunit you’ve activated.
ITOunit_Price: The price of one ITOunit.
Example Calculation
Let’s go through an example to make it clearer.
Example Values:
Block_Reward_WFI: 0.00009804 WFI per block
WFI_Price: $0.17
Total_ITOunit: 1000 ITOunit
ITOunit_Price: $0.25
Using the formula:
Step-by-Step Calculation:
Calculate the total yearly reward in WFI:
Convert this reward to USD based on the WFI price:
Calculate your initial investment in USD:
Now calculate the APR:
Conclusion
In this example, the APR for your WFI mining is 210.24%, meaning over a year, you can expect to earn 110.24% of your initial investment based on these parameters. With the WFI token price at $1.70, the yearly reward would be $5,256.04, and the new APR would be 2,102.42%. This means if you wait for the price of WFI to rise to $1.70, you could sell your mined WFI for a significantly higher return.
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