It’s been a couple months since the original Impact Hour Rate discussion written by ygg. Since then there has been some signifcant changes to the formula and more clarity we can add to the relationship between funds raised, Impact Hours and the final Impact Hour Rate.

In the current formula used to calculate the Impact Hour Rate(IHR) we have three variables:

**x - Target Goal.** Total amount of funds raised or Expected amount of funds raised.

**R - Max Impact Hour Rate.** This is the hard cap on how much Impact Hours can be earned per wxDai contributed.

**E - Impact Hour Slope.** How much funds do we expect to raise per Impact Hour. A low number makes a more curved function, whereas a high number flattens the curve.

In order to calculate our Impact Hour Rate we will plug these variables into this formula:

The higher the Target Goal (x), the higher the hourly wage for Impact Hours(IHR) becomes. Additionally, the more funds that are raised, the lower the portion of tokens that go to pay for Impact Hours. These two properties mean working hatchers are incentivised to raise more funds, and funding hatchers are incentivised to invest more funds.

EDIT March 30 - Formula error fixed, nice catch @ygg_anderson and @sem !