> For the complete documentation index, see [llms.txt](https://docs.ananasverse.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.ananasverse.xyz/profit-model.md).

# Profit Model

Every distribution cycle, the profit generated by a business operation is distributed pro-rata to the Worker NFTs actively hashing in that operation.

## The formula

```
Profit per NFT = ( Your Hash Power in Sector X ÷ Total Active Hash Sector X ) × Sector Daily Profit Pool
```

## Variables explained

| Variable                        | Meaning                                                                                                     |
| ------------------------------- | ----------------------------------------------------------------------------------------------------------- |
| **Your Hash Power in Sector X** | Your worker's Hash Power while assigned and hashing in that operation, with any durability penalty applied. |
| **Total Active Hash Sector X**  | The combined Hash Power of every Worker NFT currently hashing in the same operation.                        |
| **Sector Daily Profit Pool**    | The day's real-world profit from that operation, deposited into the Revenue Vault.                          |

## Worked example

Operation X generates a **$10,000 USDG** profit pool this cycle. The total active hash in the operation is **10,000**.

Your Worker NFT is a **Tier 4** (125 hash) at full battery and durability:

```
Share  = 125 ÷ 10,000 = 1.25%
Payout = 1.25% × $10,000 = $125 USDG
```

## The cost of running

Earning is not free — your worker consumes resources that you restore with $ANANAS:

* **Battery** drains each cycle and must be recharged.
* **Durability** wears down and must be repaired, especially below 50% where it applies a hash penalty.

Your net income is your payout minus the cost of keeping the worker running.

## Payout mechanics

* Profit is deposited into the **Revenue Vault** in stablecoin form (USDG/ETH or native).
* Each holder's claim is computed on-chain from active Hash Power.
* Holders **claim directly** from the Vault — no admin involvement.
* Payouts arrive as **ETH/USDG** stablecoins, with **$ANANAS** token rewards on top.
* The fund managers take a fee for operating the businesses; the remaining profit is distributed to holders.

## Transparency

* The formula is fixed and executed on-chain, so everyone receives exactly what they earned.
* There is **no fixed APY and no guarantee of returns**. The only thing that decides your payout is how the underlying real business performs.

## Related

* [The Work Hub](/work-hub.md) — battery, durability, and luck mechanics.
* [Fund Allocation](/fund-allocation.md) — where the profit-producing capital comes from.
* [Smart Contract Architecture](/smart-contracts.md) — the Revenue Vault in detail.


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