Decay system

We implemented a rewards decay system that causes a decrease of ROI over 1 year.

Why? Because with the daily decay, we encourage holders to recreate new nodes rather than only sell their profits.

It is also an efficient anti-whale system:

If whales do not play the long game, they are penalized by earning less and less.

Here’s the percentage of decay for each node:

-> SOLDADO Node: -1%/day

-> CAPO Node: -0,8%/day

-> SEGUNDO Node: -0,6%/day

-> CONSIGLIERE Node: -0,4%/day

-> DON Node: -0,2%/day

Instead of encouraging inflation of the supply of the token in circulation, we think it is better to reduce it.

This decay mechanism allows us to:

=> Limit the supply available on the market;

=> Reduce the bearish pressure when users take profits;

=> Offer sustainability to the protocol in order to offer returns in the long term.

The decay system is only one of the stability guarantee mechanisms implemented in the The Nodefather Protocol.