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TOKENOMICS AND EMISSIONS
Velocore utilizes two tokens for managing its utility and governance:
$VC— ERC-20 utility token of the protocol
$veVC— ERC-721 governance token in the form of an NFT (non-fungible token)
$VCis used for rewarding liquidity providers through emissions.
$veVCis used for governance. Any $VC holder can vote-escrow their tokens and receive a
$veVC(also known as veNFT) in exchange. Additional tokens can be added to the
$veVCNFT at any time.
The lock period (also referred to as the vote-escrowed period, hence the ve prefix) can be up to 4 years, following the linear relationship shown below:
$VClocked for 4 years will become 100
$VClocked for 1 year will become 25
The longer the vesting time, the higher the voting power (voting weight) and rewards the
Velocore mechanics incorporate a blend of two DeFi concepts:
- Vote-Escrow — first introduced by Curve to bolster incentives for long-term token holders
- Staking/Rebasing/Bonding or (3,3) game theory — designed by Olympus DAO
Combined, the ve(3,3) mechanism rewards behaviors correlated with Velodrome's success, such as liquidity provision and long-term token holding. Liquidity providers receive
$veVCholders receive protocol fees, bribes, rebases, and governance power.
The initial supply of
At launch, veNFTs and tokens allocated to partner protocols/communities will be utilized to support and reward contributors in the Velocore and zkSync ecosystems. (e.g., POAP Airdrop Event, etc.)
Locked for 4 years in $veVC of various sizes.
- 13.5M for ecosystem fund for partner protocols / communities (22.5%)
- 9M for the protocol and the team (15%)
- 24M for the presale (40%) — 4.35M for the private presale (7.25%) — 19.65M for the public presale (32.75%)
- 4.5M for ecosystem fund for partner protocols / communities (7.5%) ex) Airdrops for events, POAPs, roles and KOLs. Released step by step few days after launching.
- 9M for initial liquidity and to deepen liquidity (15%)
Weekly emissions start at 1.4M
$VC(2.33% of the initial supply) and decay at 1% per week (epoch).
$veVCholders receive a rebase proportional to epoch LP emissions and the ratio of
$VCsupply, thus reducing vote power dilution for
The weekly rebase amount is calculated with the following formula:
(veVC.totalSupply ÷ VC.totalsupply)³ × 0.5 × Emissions
$veVCsupply does not affect weekly LP emissions.
$veVCholders decide which liquidity pools receive emissions in a given epoch by voting on their preferred liquidity pool gauges.
$VCemissions will be distributed proportionally to the total votes a liquidity pool receives.
In return, voters receive 100% of the trading fees and bribes collected through the liquidity pool they vote for.
While Velocore supports permissionless liquidity pool. Gauge creation can only include whitelisted tokens. Part of the partner onboarding program will include whitelisting of their tokens where needed. Partners can request additional tokens to be whitelisted.