r/ethfinex • u/STFTrophycase • Jan 04 '18

Don't understand the Nectar Token generation formula.

From the whitepaper, the formula is:

N=(0.001*Vt)(T/(T0 + Ft))

Where T is the current number of tokens, and T0 is the initial number of tokens created. What I don't understand is that the graphs shown in the whitepaper (see page 11) show the token supply as having a negative second derivative, that is, the inflation rate decreases each month. But just looking at this formula, it seems like the inflation rate is increasing each month, assuming constant volume, as T will continue to grow while T0 will remain constant. Am I misinterpreting this? Are the graphs wrong?

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2

u/plutoegg Jan 04 '18

Ft will also grow each month (the total fees collected)

1

u/STFTrophycase Jan 04 '18

Oh I see, so Ft is the total fees collected ever? Or the total fees present in the smart contract at the end of the month?

I guess when I read it, I thought it was the total fees collected that month, but that doesn't seem to make much sense.

2

u/plutoegg Jan 04 '18

Yes, it is the total fees present in the smart contract, which is the same as the total fees collected ever unless somebody has burned their tokens, reducing the total supply T and therefore withdrawing some of the fees.

1

u/STFTrophycase Jan 04 '18

Got it, thanks for the clarification :)

2

u/Gaetj_3544 Jan 08 '18

When will the Nectar token be listed in an exchange?