V6.4 Update (2024-04-17)

Allowance multiplier reduced to 0.15 for all tips placed > 2024-04-17 07:35 UTC
Added explanation around the "how it works" fact sheet
Added clarity around daily snapshots for allowance purposes vs. month-end snapshots for distribution purposes.

V6.3 Update (2024-04-16)

Added an additional fact sheet that explains how the airdrops actually work, and the role of Farcaster vs. Warpcast vs. Dune vs. Neynar, etc.

V6.2 Update (2024-04-16)

Explicitly noted that if a tipping cast is deleted, the tip is invalidated

V6.1 Update (2024-04-14)

Allowance multiplier was rolled back to 0.25. I don't know why or for how long. Note: a reduction in the multiplier, from an economics standpoint, is a necessary change to slow down inflation as more users onboard and start receiving allowances, which would otherwise devalue previously tipped points.
Factsheet now has a version that aligns with the FAQ, for obvious reasons.

V6 Updates (2024-04-13)

Roughly around 2024-04-13 UTC, two changes were made:
- Allowance multiplier was reduced from 0.25 to 0.15. This represents a 40% reduction in daily tip allowances for tips made on or after 2024-04-13 UTC, ceteris paribus.
  - This is presumably to counter the massive surge in Farcaster users. The impact of this change is to keep point growth stable, otherwise too many points would be allocated this season, effectively depreciating the value of points previous allocated.
  - The change was done in a backwards compatible way, i.e. tips made before 2024-04-13 UTC, under the old allowance multiplier, will still be honored at that allowance level
- Over-tipping allowance was adjusted to 150%. In other words, if your allowance is 100 you can actually tip 150. My interpretation is that this is a galaxy brained move designed to do at the following:
  - Calm down the people obsessed with tip minutiae: note that 1.5*0.15 = 0.225, which is pretty close to 0.25. In other words, your effective tip allowance is almost the same as before. So if you didn't notice the reduction in your allowance, you'll be fine. And if you did, I guess you could over-tip. Most users don't know nor care.
  - Note: be cautious of intentionally over-tipping, because as you can see, the algorithm can change at any time, with no guarantee the change will be backwards compatible. It is presumably a margin of safety during times when data is delayed and people accidentally over-tip due to not knowing their accurate allowance. It does not appear to be a target. Consider also that you might be disqualified if you regularly intentionally over-tip, as this is a signal for allowance abuse.
  - Rescue the people who have inadvertently over-tipped in the past
  - Help out people who didn't notice their allowance changed dramatically
  - Help out all the newcomers who aren't going to get this 100% correct, especially given the API/Dune data issues we've seen indirectly affecting various frames
  - More cynically, this could be used as a honey pot to signal people trying to abuse the system. Again, beware. It's one thing not to notice your allowance changed, its another to intentionally abuse the system repeatedly.

V5 Updates

Updated the 'overtipping' margin from 3% to 5%
Updated Useful Links section
Added info about the refresh schedule

V4 Updates

The overtipping rules have changed around 2024-04-09, the tips are now paid out earliest tips first.

V3 Updates

I corrected a HUGE error I made about the cast_count that is used to select the percentile of reactions which count towards your allowance - it is not based on your in scope number of casts for the day, but your in scope number casts ALL TIME!
Furthermore, llamatron, who discovered this error, also realized there is a quirk in the calculation being used.
See the question "Put simply, what do I do to get more tips?" for a simple interpretation of this new information.
@wake pointed out an error in the factsheets, where I incorrectly said "only tips and recasts count", when I meant to say "only likes and recasts count". What an embarrassing mistake, I really hope it doesn't confuse too many people 😢. I've corrected the images here in the FAQ and posted new ones on the thread but it's difficult to surface replies.
@eddie pointed out yet another error about reactions - it's the unique number of users reacting to your original casts per day
I have expanded on the idea that you need an audience, which you grow from replies, before anything else kicks in

V2 Updates

I corrected statements about Quotes being equivalent to recasts - they aren't, and added an answering about when to quote
Added some information about holding 10K Degen across multiple wallets
I added a Quick Facts Sheet

Update: Degen Tips Ultimate FAQ V2 - V6.4