Once we reach TGE, your testnet reward points are going to get converted into DGRAM. That DGRAM will be placed in a capsule and issued to your wallet/account.

That capsule is VERY special and works in ways that people have never seen before in web3. The best analogy I can come up with is that it's like a piece of ripening fruit. If you eat it early, you'll only be able to enjoy a small amount of it. The longer you leave it to ripen, the more fruit you will be able to eat. And at some point, it will be fully ripe and you can eat all of it.

The capsule works the same way. When you get your rewards capsule at TGE or get one during the node sale (Tier 2 or Tier 3 nodes have a bonus capsule included), you'll be able to "eat" (claim) 10% of it immediately. If you choose to eat it, then you will take the ripe part and throw the rest away and it will get used for other things in the ecosystem. 50% of the part you don't eat will get burned and go back into the ecosystem. The other 50% will get redistributed to all the other "unpeeled fruit".

This last part is important, because it means that the maximum value of your capsule will actually increase the longer you hold it. Just as an example (purely an example with simple numbers), if your testnet rewards give you 1000 DGRAM in a capsule, it's possible that after waiting 12 months, that fully mature capsule could be holding 1300+ DGRAM because it would have received a little bit of redistribution from each capsule that was claimed early.

It's also REALLY important to understand that once you peel the fruit, you have to eat the ripe part and get rid of the rest.

In this analogy with the fruit, the node is like the peeler that lets you eat the fruit. Without the peeler, you can't eat. But you can sell that fruit to someone who does have a peeler. There is no limit to how many fruit the peeler can peel. 🙂