Few things personify VaporFi's commitment to do things differently than our Compound Bonus — part of our "Flip the Script" initiative availing opportunities and extra bonuses for the smallest, entry investors who create "baby" nodes (less than 20K in size).
For as long as a node remains less than 20,000 $VPND in size, it is eligible for an additional bonus when you compound. And like the DH Bonus, the Compound Bonus operates retroactively on all available rewards.
When you compound, then the appropriate bonus rate is dynamically applied to all your accumulated rewards to date. The Compound Bonus is displayed separately from your Daily APR and is only activated when you compound — it is applied retroactively to boost the total reward $VPND tokens to be compounded (minus the Compound Tax).
Tiers of the Compound Bonus
Nicknamed "Flip the Script", we implemented a Compound Bonus Tier System that rewards small nodes in a sustainable way, empowering these smaller nodes to grow bigger, quicker. The Tier System is detailed in the table below:
1,000 - 4,999 $VPND
5,000 - 9,999 $VPND
10,000 - 19,999 $VPND
All Nodes 20,000+ $VPND
NOTE: Compounding your rewards do NOT reset your Diamond Hands bonus.
Every time you Compound your rewards, there is a Compound Tax levied on your available rewards. The tax is detailed in the table below:
Less than 5,000 $VPND
(2% burned, 3% to Rewards Pool)
5,000 - 49,999 $VPND
(2% burned, 5% to Rewards Pool)
50,000 - 499,999 $VPND
(2% burned, 7% to Rewards Pool)
Greater than 499,999 $VPND
(2% burned, 10% to Rewards Pool)
Imagine that you have just created a 1,000 $VPND node and five days later you decide to compound your 50 $VPND in rewards at 1.0%/day.
• No Diamond Hands bonus is activated, but upon compounding, the Compound Bonus of 20% is applied, dynamically boosting your rewards to 60 $VPND.
• So, the amount added to your node = 60 $VPND - Compound Tax of 5% = 57 $VPND
Imagine that you have started a 1,000 $VPND node and 30 days later you decide to compound your accumulated rewards.
• This node will have just achieved Diamond Hands bonus Tier II (1.10%), so the displayed rewards is 330 $VPND as you click [Compound]
• The Compound Bonus of 20% is applied, dynamically boosting your rewards from 1.10% ROI to (1.10%) x (1.20) = 1.32%), so the 330 tokens is increased to 396 $VPND.
• So, the amount added to your node = 396 $VPND - Compound Tax of 5% = ( 396 - 19.8 ) = 376.2 $VPND
Imagine that you own an 18,000 $VPND node that has just surpassed 40 days of no claims so it has just achieved DH Tier III.
• Its base rewards at 1.0% would be 7,200 $VPND, and with the DH Tier III Bonus of 0.30%, the total displayed rewards is ( 7,200 x 1.3 = 7,200 + 2,160 = 9,360)
• The Compound Bonus of 0.05% is applied, dynamically boosting your rewards from 1.30% ROI to (1.30%) x (1.05) = 1.365%), so the 9,360 tokens increases to 9,828 $VPND.
• So, the amount added to your node = 9,828 $VPND - Compound Tax of 7% = ( 9,828 - 687.96 ) = 9,140.04 $VPND
• This node will continue enjoying the DH Tier III bonus, but because it has now exceeded 20,000 in size, it is no longer eligible for any future Compound Bonuses.