Swap factor

In order to determine the amount of uWatts that their holders receive at the moment a Project becomes operational, the Protocol calculates the asset value, and then, the swap factor will be then calculated as:

$\text{swap factor} = \dfrac{\text{Asset value}}{\text{\$uW}(t_0)}$

Where $\text{\$uW}(t_0)$ stands for the reference value of the uWatt at the moment of the swap.

The swap factor will also balance out the differences between the financial conditions of Projects with different types of energy generation technologies. For instance, a hydraulic power plant can provide uninterrupted power for almost 24 hours a day, producing up to 5 to 6 times the energy of a solar power plant of the same size. However, it can require an investment around 4 times bigger to originate. Hence, the swap factor of a hydraulic plant would be approximately 1.5 times ($6 / 4$) bigger than the swap factor of a solar power plant.