# Equations

Unit is the NFT that identifies the minting license. The Unit is used to calculate the minting production and it has a duration of 60 months. Each Unit has the following traits:

- Emission Date (mm/yyyy)
- Base Value

Max Index Minting (MIM) is a Unit index that is used to calculate the minting rewards. The MIM is calculated starting from the Unit base value and the emission date with the following formula:

$MIM = base\ value * (1-\frac{current\ date-emition\ date}{60})$

The Carrying Capacity (CC) is a parameter used to control the exponential issuance of LFi tokens as the number of Units sold increases. The CC is calculated by the following formula:

$CC = 1.5\%*round(\frac{n\ nft \ issued}{250000})$

The Collateral Index (CI) identify the power of minting production based on the amount of collateral cLFi connected to all the unit compared to the amount of cLFi needed. The CI formula is:

$CI = 5\% + 95\%*(\frac{\sum cLFi\ connected}{n\ NFTs*cLFi \ needed})$

The Production Weight (PW) for each Unit is used to calculate how much % of the production should be redistributed to the owner of the NFT.

$PW = \frac{MIM}{\sum{MIM\ of\ all\ NFTs}}$

The Monthly Distribution (MD) is the amount of token that each month are released from the Minting Smart Contract. the amount of token released will decrease every four month by 20%.

The Minting Production (MP) for each Unit is based on the price of the token LFi at the market(P1), the ICO price of LFi (P2), Unit MIM and the Unit base token emission by observing the following formula:

$if\ \ \ \ P1<P2 \ \ \ \ \ \ MP=PW*MD*(MIM-CC) *CI$

$if\ \ \ \ P2<P1 \ \ \ \ \ \ MP=PW*MD*(MIM-CC)* \frac{P2}{P1} * CI$

After the calculation of the Minting Production it will be divided between the holder of the Unit and the holder of the collateral cLFi.

The NFT Hashrate is a representation of the amount of NFT in circulation. It is used to plot ecosystem growth and emission reductions in a graph. It is calculated using the following formula

$NFT \ hashrate = (NFT\ minted - NFT\ burned)*0,003695$