Exchange Rate

It is crucial to understand the exchange rate to comprehend WaterNeuron fully. It is designed to be fair and simple. It is described with the following formula.

$$exchange\_rate = nicp_{supply}/neuron_{6-month\_stake}$$

The exchange rate is updated every time some ICP is spawned from maturity. Staking new ICP for nICP doesn't change the exchange rate.

The exchange rate will only have positive growth, which means that at first, you can exchange 1 ICP for 1 nICP. After a while, you can exchange 1 ICP for 0.9 nICP.