Fixed APY
Last updated
Last updated
APY is an abbreviation for Annual Percentage Yield. This measures the real rate of return on your principal amount by taking into account the effect of compounding interest. In the case of FUTURE, your $FUTR tokens represent your principal, and the compound interest is added periodically on every Rebase event (Every 10 minutes), known as an 'Epoch'.
Your new principal amount is your then current FUTURE token amount, plus your new rebase token amount. This total of this amount is then considered the principle calculated for your next rebase rewards.
Using a Positive Rebase formula, FUTURE allows token distribution to be paid directly proportional to epoch rebase rewards, worth 0.018 percent of the total amount of $FUTR tokens held in your wallet every 10 minute epoch period. The rebase rewards are distributed to all $FUTR holders on each EPOCH (10 minute rebase period). There are a total 52,560 EPOCH in a year.
The Power of Compound Interest - It is important to note that your balance will grow not linearly but exponentially over time. Taking a compound interest of 0.01855% / 10 minutes: