Whuff

Whuff Dynamic Interest System

🎯 Overview

The Whuff interest system grows users' Whuffie pools over time through compound interest. Unlike traditional fixed rates, Whuff uses a dynamic rate system that rewards active, thoughtful community participation.

📊 How Interest Rates Work

Rate Range: 2-8% annually (compound daily)

  • Base rate: 2% (minimum for all users)
  • Maximum rate: 8% (for highly active community members)
  • Your personal rate depends on both global network health and your individual activity

🌍 Global Rate Calculation (Affects Everyone)

The system calculates a baseline rate based on overall platform health over the last 30 days:

Global Factors:

  1. User participation (40%): What percentage of users allocated Whuffies?
  2. Allocation activity (40%): Average allocations per user
  3. Network effect (20%): Total user count (more users = higher rates)

Result: A global rate between 2-8% that serves as everyone's starting point.

👤 Personal Rate Multiplier (Individual Activity)

Your personal rate = Global rate × Your activity multiplier (0.3x to 1.5x)

Personal Activity Factors (last 30 days):

Factor Weight What It Measures How to Maximise
Commitment level 30% % of total Whuffies allocated Allocate 80%+ of your Whuffies
Allocation frequency 15% How often you allocate Make 5+ allocations monthly
Allocation diversity 15% Number of different recipients Allocate to 3+ different people
Allocation quality 15% Average Whuffies per allocation Give meaningful amounts (3-5 Whuffies)
Mutual relationships 15% Recipients who allocate back to you Build 3+ mutual relationships
Loyalty bonus 10% Account age Max 15% bonus after 1 year

💰 Practical Examples

Inactive User:

  • Global rate: 4%
  • Personal multiplier: 0.5x (low activity)
  • Final rate: 2% annually

Average User:

  • Global rate: 4%
  • Personal multiplier: 1.0x (moderate activity)
  • Final rate: 4% annually

Community Champion:

  • Global rate: 6%
  • Personal multiplier: 1.4x (high activity + mutual relationships)
  • Final rate: 8.4% (capped at 8%)

🔄 How Growth Actually Works

Timeline Example (starting with 100 Whuffies):

  • Month 1: 100 → 100.3 Whuffies (can't allocate fractional amounts yet)
  • Month 3: 100 → 101.2 Whuffies (1 new Whuffie to allocate!)
  • Year 1: 100 → 104-108 Whuffies (4-8 new Whuffies!)

Key Points:

  • Interest compounds daily but you can only allocate whole Whuffies
  • Even if you allocate all 100 Whuffies, you'll gradually earn more to give
  • Higher activity = faster growth = more Whuffies to allocate

🎮 Strategic Implications

What Gets Rewarded:

✅ High commitment (allocating most of your Whuffies)
✅ Thoughtful allocations (3-5 Whuffies vs. many 1s)
✅ Diverse relationships (allocating to different people)
✅ Mutual relationships (people who value you back)
✅ Consistent participation (regular but not excessive activity)
✅ Account loyalty (being a long-term member)

What Doesn't Work:

❌ Gaming with frequent tiny allocations
❌ One-sided relationships with no reciprocity
❌ Hoarding Whuffies without allocating
❌ Spam allocation behaviour

🤝 The Mutual Relationship Bonus

How It Works:

  • System checks your recent allocations (last 30 days)
  • For each recipient, checks if they've allocated back to you recently
  • Counts these as "mutual relationships"
  • Maxes out at 3 mutual relationships for full 15% factor score

Example:

  • You allocate to Alice, Bob, and Carol
  • Alice and Bob allocate back to you = 2 mutual relationships
  • Carol doesn't allocate back = not counted
  • Mutual score: 2/3 = 67% of maximum bonus

📈 Network Effects

Virtuous Cycle:

  1. Active users get higher personal rates
  2. Platform activity increases global rates
  3. Everyone benefits from a healthy network
  4. More engagement creates even higher rates

Community Benefits:

  • Early adopters benefit from network growth effects
  • Quality engagement is rewarded over quantity
  • Mutual relationships strengthen the entire platform
  • Long-term members get loyalty bonuses

⚡ Technical Implementation

When Rates Update:

  • Daily calculation: Background task runs every 24 hours
  • App launch: Calculates any pending interest when opened
  • Real-time display: Profile shows current rates

Data Tracking:

  • Last 30 days of allocation activity
  • Mutual relationship mapping
  • Account age and loyalty metrics
  • Global platform statistics

❓ Common Questions

"Why is my rate different from my friend's?"

Personal rates depend on your individual activity patterns. More committed, active users with mutual relationships get higher rates.

"Can I game the system?"

The multi-factor weighting makes gaming difficult. Quality engagement (commitment, mutual relationships, thoughtful allocations) beats quantity every time.

"What if I allocate all my Whuffies?"

Perfect! High commitment gets the biggest rate boost (30% weighting). You'll earn new Whuffies over time through compound growth.

"How do I maximise my rate?"

  1. Allocate 80%+ of your Whuffies
  2. Give meaningful amounts (3-5 Whuffies)
  3. Build mutual relationships
  4. Allocate to diverse people
  5. Stay consistently active

🎯 System Goals Achieved

✅ Rewards loyalty over gaming
✅ Encourages thoughtful allocation over spam
✅ Creates network effects benefiting everyone
✅ Provides ongoing engagement through growth
✅ Prevents "willy nilly" behaviour through weighted incentives
✅ Builds genuine community through mutual relationship bonuses

The system naturally evolves as the community grows, rewarding the exact behaviour that makes Whuff a thriving, authentic platform for recognising value in others.