Understanding the relationship between EFX and NFX in Vote Weight

Summary:

EP = Stake Age x EFX

EP + NFX = vote/reward weight in your DAO stake

Your weight is limited by the lower amount of EP or NFX.

Stake Age constantly increases EP up to 1000 days of staking.

If you add or remove EFX from your stake, Stake Age will average up or down.

Explanation:

Rewards from staking in the DAO are participatory. You need to actively vote on all proposals to get rewards. Rewards are in EFX.

EP is a mechanism to increase your EFX's value within the DAO, it isn't a reward per sae. What it does over time is allow you to reduce your stake a little bit at a time while maintaining your vote weight, which does give the rewards.

So once you have a sufficient level of EP, you can unstake small amounts and still get the same amount of rewards from voting.

If you unstake an amount your EP will go down because you will lose the Stake Age for the tokens you remove. The StA will average down and will impact your EP.

Likewise when you add new EFX. Your StA will go down because your StA will average out with the new EFX stake that has 0 StA. But it also moves up EP quickly with more EFX added.

Your vote weight is the combined amount of EP and NFX and is restricted by the lower of EP or NFX.

In short, this makes NFX the key to your vote weight. Because EP is always increasing, it is your NFX that will stall or stop your weight from increasing as EP surpasses your NFX.

To purchase NFX swap EFX for NFX on Defibox.io.