Unweighted shares (
US) is simply the amount of JOE tokens that 'back' a
fNFTBond. The NFT is backed by JOE tokens in the sense that it is entitled to receive rewards generated by that amount of JOE tokens. This metrics is utilised to issue shares to
fNFTbond holders. Issued shares are used to account for reinvested revenue.
This means that at the time of issuing, the
USof a bond will simply be its cost.
The longer you hold a bond, the more the underlying
USwill grow. This is because during every reward emission, the part that is reinvested is accounted for through the increase of
USfor all bonds minted before the date of issuing. This is done in order to guarantee ownership of future passive income generated by the compounded amount.
(1) 4 Level 1 and 4 Level 2
fNFTBonds get minted at launch.
Now, a Level 1 NFT will have 10
USand a Level 2 NFT will have 100
(2) Now let's suppose that after 1 year, the protocol has earned revenue for 50% of its TVL.
(3) We can now imagine being in Phase 1: TA where all revenue is reinvested. Even if bond holders won't earn any liquid rewards, they will be receiving shares accounting for their contribution to the revenue. As all rewards are reinvested, the protocol will be issuing 220 shares.
- For every JOE reinvested within the protocol, 1 share is distributed to all bonds. Shares issued are divided between bonds according to their unweighted shares.
To calculate how many shares a bond is entitled to claim, we must calculate its percentage of ownership over all unweighted shares.
- : Shares issued to a bond of level.
- : Unweighted shares of a bond of level.
Each NFT will now have the following unweighted shares
Keep in mind that also weighted shares increase by the amount of claimable shares multiplied by the bond's weight. This is done in order to ensure NFT holders the right to claim payments generated by their compounded rewards.
The protocol will now look like this