> For the complete documentation index, see [llms.txt](https://snowconedao.gitbook.io/snowconedao/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://snowconedao.gitbook.io/snowconedao/learn/glossary/discount-rate.md).

# Discount Rate

**What everyone needs to know**[**​**](https://info.juicebox.money/dev/learn/risks/#what-everyone-needs-to-know)

* A discount rate is a percentage configured on each funding cycle that determines by how much the subsequent cycle's `weight` (i.e. exchange rate) should decrease compared to the funding cycle for which the discount rate is set.
* A discount rate is only applied if a new `weight` isn't explicitly set in an upcoming funding cycle reconfiguration.
* A discount rate can be used to automatically decrease token issuance over time. Funding cycles with higher `discountRate`s and/or shorter `duration`s will have token issuance decrease faster than those with smaller `discountRate`s and/or longer `duration`s.

**What you'll want to know if you're building**[**​**](https://info.juicebox.money/dev/learn/risks/#what-youll-want-to-know-if-youre-building)

* A discount rate can be specified in a funding cycle through the `SNOWCntroller.launchProjectFor(...)` or `SNOWController.reconfigureFundingCyclesOf(...)` transactions.


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