AlfaFrens

gm!

Want to deeply understand AlfaFrens mechanics in less than the time (6-8 mins) it takes to take a 💩?  

We also introduce Le Blue Elefant Strategy™️

Check it out:  https://paragraph.xyz/@0x688390820b57cd65c1f76b5509ba28f79a343343/alfafrens-mechanics-101  

tl;dr in 🧵 format below

AlfaFrens First Principles

2 tokens
- $DEGEN: input for subs/output as cashback
- $ALFA: output for subbing to channels

5 actions
- sub: get channel access + accrue $ALFA
- unsub: opposite of sub
- stake: get portion of cashback
- unstake: opposite of stake 
- claim: receive accrued $ALFA

Channel Level $ALFA Distribution
"Channel $ALFA rewards are a function of three things: 
1. Global $ALFA rewards
2. the Channels share of staked $ALFA vs. all Channels and 
3. the Channels share of subscription flows vs. all Channels."

A slightly less straightforward equation...

Channel $ALFA rewards = (GR * 0.31 * CFRP) + (GR * 0.69 * CSP)

WTF dis? 

Let’s break this down…

Well GR = Global $ALFA rewards as deciphered above

Channel Flow Rate Proportion (CFRP) = Channel inflow rate / Sum of all Channel inflow rates
This is the sum of all users subs to the channel divided by the global flow rate

What about "CSP"?

Channel Stake Proportion (CSP) = Channel staked amount / Sum of all Channel stake amounts

This is the sum of all users stake to the channel divided by the global staked amount

Hopefully, that cleared some things up. If not, ask, I won’t bite, I promise ;) 

You should be feeling like this guy now if you've gotten this far.

Let’s look at and break down the main equation again: 

Channel $ALFA rewards = (GR * 0.31 * CFRP) + (GR * 0.69 * CSP)

Now that we know what GR, CFRP and CSP are, we can see that 31% of $ALFA allocated is determined by channel sub flow rate and 69% is determined by channel staked amount, act accordingly.

But how is cashback distributed?
- 70% cashback to channel stakers
- 25% to the channel creator
- 5% protocol fee

User Level $ALFA Distribution

"User $ALFA rewards are a function of the Channel $ALFA rewards divided by the number of subscribers."
Simple AF, here’s the equation:
User $ALFA rewards = Channel $ALFA rewards / Number of subscribers
That’s it.

But what about user cashback allocation?

User Level Cashback

"The amount of cashback a User receives is determined by their share of the staked amount vs. the total staked amount in the Channel."
Here’s the equation: 

User cashback allocation = Channel cashback * (User staked amount / Channel staked amount)

Also simple!

Implications, Flywheels and Le Blue Elefant Strategy

Well, you’ll have to click through if you’re curious:  https://paragraph.xyz/@0x688390820b57cd65c1f76b5509ba28f79a343343/alfafrens-mechanics-101 ;)

If you made it here, you are probably in the top 4.20% in terms of attention span, so literally pat yourself on the back and give me some love by:
- liking this
- recasting
- and hitting that follow button. 

It’ll make my day!

Also subscribe or stake to my channel if you prefer wealth or just wanna hang:

Also subscribe or stake to my channel if you prefer wealth or just wanna hang: https://alfafrens.com/channel/0xef837e8579ef5c6d28ea185b1dd3192c032b18db

Global Level $ALFA Distribution

"Global $ALFA rewards are a 1-to-1 relationship with the sum of all Channel inflow rates."

This is fairly straightforward and so is the equation:
Global $ALFA rewards = Sum of all Channel inflow rates
e.g. if the sum of all sub flows is 420,690, then daily $ALFA emissions = 420,690