Participation Rate

The Participation Rate is calculated based on the ratio of the ‘reference price of NFTs added by a user’ to the ‘total representation of the basket calculated by reference prices.’ The reference price represents the estimated market value of a specific item type, systematically derived from marketplace data. It employs a proprietary valuation model designed to reflect prevailing market conditions while filtering out statistical anomalies and mitigating short-term volatility.

When a basket is completed, the Participation Rate determines each participant’s portion of the Total Exchangeable NXPCₜ. This calculation can be demonstrated through an example with Alice.

Participate Rate (Alice’s Example)

\frac{\sum R e f er e n ce P r i ce o f N F T s in t h e ba s k e t _{A l i ce} \cdot N u mb er o f N F T s in t h e ba s k e t _{A l i ce}}{t o t a l v a l u e o f t h e ba s k e t c a l c u l a t e d b y r e f er e n ce p r i ces}

For example, if Alice has added two of Item A into the basket with a reference price of 50 per item, and the total basket representation of the basket calculated by reference price is 1,000, her Participation Rate would be 10% (50 × 2 ÷ 1,000).

NXPC Exchangeable (Alice’s Example)

N X P C E x c han g e d_{A l i ce} = P a r t i c i p a t i o n R a t e_{A l i ce} \cdot T o t a l E x c han g e ab l e N X P C_{t}

The amount of NXPC Exchangeable for Alice is determined by multiplying her Participation Rate by the Total Exchangeable NXPC_t. For instance, if the Total Exchangeable NXPC_t is 500 and Alice’s Participation Rate is 10%, 50 NXPC (10% x 500) would be provided to Alice for participating in Item Fusion.