> For the complete documentation index, see [llms.txt](https://openfi.gitbook.io/openfi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://openfi.gitbook.io/openfi/product-guides/dao-and-incentives.md).

# DAO and Incentives

### The Function of $NEC Token

<figure><img src="https://39437757-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FcOgIxFliRHk4hsuSB7Ls%2Fuploads%2F0pJhuAiZKw4wTRlEe3dp%2FWX20230506-174650%402x.png?alt=media&amp;token=00807a98-4049-4e73-968c-675dc99a2ec1" alt=""><figcaption></figcaption></figure>

### •Agreement value:

$NEC rewards can be obtained by inviting users to stake $OPEN tokens. For every 1,000 $OPEN that is staked through an invitation, users can mint out the $NEC token, which can be used to increase the release rate of staking rewards.

### • Recommendation revenue:

Users can also earn $NEC through recommendation revenue. For example, if a user invites someone to stake $1,000, they can earn 9 $NEC per month.&#x20;

If they invite 10 people to invest $10,000, they can earn 900 $NEC per month. The $NEC token is net consumable and in demand by users, which can cause its price to increase.

<figure><img src="https://39437757-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FcOgIxFliRHk4hsuSB7Ls%2Fuploads%2FksYhjIMQytXM4LGRt2my%2FWX20230506-175658%402x.png?alt=media&amp;token=f7809edb-6f93-45d2-8199-6dac8eec696a" alt=""><figcaption></figcaption></figure>

## DAO Community rewards

**Dividend Cycle:** The 12th and 28th of every month

**Dividend Algorithm:**&#x20;

If the OG level exceeds the static revenue growth every 15 days, they will receive corresponding levels of dividends based on $sOPEN increment.

<figure><img src="https://39437757-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FcOgIxFliRHk4hsuSB7Ls%2Fuploads%2FxLR3VtMmxD2viE3AYWN0%2FWX20230506-180531%402x.png?alt=media&amp;token=bbc183f3-93cb-4afa-b8f5-7d7fa3386749" alt=""><figcaption></figcaption></figure>

### Examples:

Assuming the IDO price of $OPEN is 5 USDT, and the newly added $sOPEN value of the whole network is 500,000 USDT with a mint asset of USDT bond, the dividend of a V3 can be calculated based on the increment of $sOPEN. If the increment of $sOPEN is 10,000 USD, the dividend of the V3 can be calculated accordingly.

<figure><img src="https://39437757-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FcOgIxFliRHk4hsuSB7Ls%2Fuploads%2FCRg8RfwlEgOgAMTEIjLZ%2FWX20230506-180140%402x.png?alt=media&amp;token=6e2a54c3-6977-4d58-a25a-02e82630d362" alt=""><figcaption></figcaption></figure>

If the value changes from the initial ideal value, the return will be lower than the ideal value along with the risk-free asset proportion parameter. However, due to the rising currency price, the value of the DAO dividend can still be considerable.