Posts about Crypto
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Tomorrow is distribution day and it seems like there are a lot of new users, so I want to make sure everyone understands Karma Multiplier (KM) especially before many of you - get your first distribution.
Moons are a governance Token for the CryptoCurrency Subreddit, if you move more than 25% of your earned Governance Tokens out of your vault - your KM will start to decrease. Because you have shown you are not interested in your earned Governance Power, you will receive a penalty on future earnings of governance power.
The penalty changes based off of the amount of Moons you have transferred out of your vault, but the maximum penalty would see you earn only 10% of potential earned Moons on future distributions. (E.G. instead of earning 1,000 Moons you earn 100 Moons).
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If you aren't sure what your Karma Multiplier (KM) is: You can find out by going to this website and entering your Reddit Username. (this tool is not perfect but it should be accurate for almost everyone)
When the results load if your "Estimated CCIP-030 Multiplier: 1" you will not receive any penalty.
https://i.redd.it/9vv6wsduw3pa1.pngIf it's a decimal such as .1 (10%), .55 (55%), or .95 (95%) that is the percent of moons you'll earn on your next snapshot.
https://i.redd.it/qaawo37ww3pa1.pngAdditionally you can do the equation yourself to figure out if you will be penalized:
KM = (Current Balance + Membership Purchases) / (Total Earned Moons * 0.75)
Note: In the event your KM is below 1, you can remove/reduce any potential penalty by adding Moons back to your vault.
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TLDR: For simplicity sake, any Potential Penalty can be avoided by transferring a maximum of 25% of your earned Moons out of your vault. (E.G. if you earn 1,000 Moons you can move a maximum of 250 out of your vault without incurring a penalty.