Please be aware that Nectar tokens were initially distributed via the Ethfinex exchange and the majority of tokens are still held on the exchange, only those tokens which have been withdrawn and are transferable on the Ethereum blockchain are included in the circulating supply calculation.
The fundamental purpose of Nectar (NEC) is to reward market makers for the value they create, in turn encouraging them to maintain market thickness and minimised spreads on the platform trading pairs. Loyalty points entitle holders to loyalty rewards held in the Liquidity Token Smart Contract, which can be redeemed (in part or in whole) through the Redeem Mechanism upon request. Loyalty points can be traded on a secondary market amongst white listed Ethfinex users. If no tokens are redeemed at the end of a 28 day cycle, the total supply of NEC will grow. Ethfinex will hold an initial supply of NEC which will not grow over time?—?as a result, the percentage ownership will gradually decrease as new tokens are issued and redeemed.
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