# Compounding System V2.0

### Compounding System V2.0 <a href="#id-6be4" id="id-6be4"></a>

Compounding is the process in which your Power Generated is converted back into Panels to increase your daily income by generating even more Power and it forms a critical part of the Solar Farm ecosystem. Solar Farm V2.0 has upgraded its compounding mechanism to be more robust and rewarding to compounders. The mechanism consists of three parts:

**Compounding Bonus:** Compounding bonus ensures those that continue to compound are rewarded for their dedication. Every 3 compounds a user makes, up to a maximum of 30 compounds, the user will enhance their compounding bonus tier. These tiers add 1.5% to your compounding bonus, stacking from 0 up to 15%. **Selling (Including fractional sells) will reset your bonus back to 0%.** Hence loyal compounders can see a growth in their share of the overall supply of solar panels.

**Compounding Cooldown:** Compounding cooldown ensures that inflation is kept under control by compounds not being spammed too frequently, whilst additionally protecting our investors from those wishing to sell by time-gating them if they wish to avoid punishment.

**Dynamic Inflation:** Inflation is a critical part in ensuring a consistent flow of investors by providing attractive entry points and shifting power away from those who obey poor selling habits. However if inflation has gotten out of control, can be controlled back to manageable levels through the intervention of the protocol administrator.


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