uWatt reference value
The uWatt is an ERC-20 token that is freely exchangeable and tradeable between users in both centralized and decentralized markets, and even peer-to-peer trading. This means that there is no way to enforce the unit price of the uWatt, and that it will be subject to the fluctuations of the market.
However, by design, the total quantity of uWatts in circulation depend on the real-world value of the assets that belong to the Reserve, and the uWatt itself represents the fractionalized ownership over the entire Reserve. Hence, the intrinsic value of the uWatt will be calculated as the Total Value Locked (TVL) in the Reserve, divided by the total supply of uWatts, and is called the uWatt's reference value.
In turn, the Total Value Locked in the Reserve is the sum of the value of each of the Projects within, calculated according to the Net Present Value of the Project's cash flow. The ownership of the Reserve over the individual Projects is represented by the pWatts held by the Reserve.
Moreover, the Unergy Protocol allows participants that meet certain conditions to "cash-out" their uWatts into an equivalent real-world value. This creates an arbitrage opportunity that helps to minimize the difference between the uWatt's market price and its reference value.
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