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 W3F, your W3F tokens represent your principal, and the compound interest is added periodically on every Rebase event (Every 10 minutes), known as an 'Wpoch'.
Your new principal amount is your then current W3F 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, W3F allows token distribution to be paid directly proportional to wpoch rebase rewards, worth 0.017 percent of the total amount of W3F tokens held in your wallet every 10 minute epoch period. The rebase rewards are distributed to all W3F holders on each WPOCH (15 minute rebase period). There are a total 42,560 WPOCH 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 0.01725% / 10 minutes:
Last modified 6mo ago