Let's see its spectrum. Please open a monitor for FFTMON (U_5).
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You may find the floor noise has been boosted. The SNR is less than 20dB.
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In order to increase the bits, please double-click on QTZ then click "Change Parameters" and set the bit length
"8".
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After you save the schematic, re-open a monitor for WAVOUT to see the signal quantized
by eight bits and listen to the sound. It should be much better than before.
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