Moon Factor activated
We are pleased to announce the activation of Moon Factor, an important update to the Neutrino protocol. In this article, we are disclosing this update’s details.
The Moon Factor concept was initially proposed in December 2020 and is described in detail in this article. The essence of Moon Factor is amplifying the recapitalization effect of the NSBT token by improving the Bonding Curve. Today, on January 15, 2021, the update was implemented. This includes the reduction of the NSBT maximum supply, improvement of the NSBT pricing formula and changes to the auction contract.
On December 29, a community vote came to a close, with NSBT holders voting to limit the maximum possible token supply to the current total supply + 1 million tokens. At the time of the update activation, the amount of NSBT tokens issued from the smart contract was 1,835,689. The excess coins on the contract were burned, and now the maximum supply, or the maximum number of coins that can theoretically be issued from the contract, equals 2,835,689. In practice, according to the Moon Factor concept, this value can never be reached because Moon Factor is an exponential curve based on this formula:
Now, the NSBT issue price depends not only on the Backing Ratio (BR), but also on the supply. Having carefully studied the initial proposal and community feedback, the Neutrino developers decided to adjust the NSBT issue price formula for better exposure in the face of sharply increased emission:
where
М = NSBT max supply
S = total current NSBT supply
K = additional coefficient based on BR and other parameters:
a = parameter in BR
b = a smoothing coefficient that prevents sharp rate jumps at the moment of deployment.
Due to the update, the auction smart contract was also changed: some functions of the auction smart contract had lost relevance. In this regard, the following methods were removed from the contract interface: buyNsbtInSurplus, instantBuyNsbtOrFail, addBuyBondOrder, cancelOrder, sellBond. The only function of the updated auction contract is now buyNsbt.
The Moon Factor update will strengthen the stability of the USDN stablecoin backing, which, in turn, will improve the stability of USDN-based stablecoins pegged to national currencies, as well as that of the DeFo extension and the entire ecosystem. We hope that the year 2021 will see even more growth, development and mass adoption of products based on the Neutrino protocol.
Join us!
Neutrino website: https://neutrino.at
Medium: https://medium.com/neutrinoteam
Twitter: https://twitter.com/neutrino_proto
Telegram : https://t.me/neutrino_group
