Tokenomics
Velvet.Capital adopts a ve(3,3) tokenomics model which combines vote-escrow mechanism with (3, 3) staking logic to boost a fly-wheel of TVL growth. The model is battle-tested by a new generation of DeFi protocols, and is perfect to align incentives of token holders, vault investors and vault managers on the platform.
VLVT
The token emission happens in VLVT, which is used to:
Incentivize growth via additional rewards to Vault managers & Vault investors and via a referral program
Stake to receive veVLVT (a vote-escrowed token)
veVLVT
veVLVT is the vote-escrowed version of VLVT. Users can lock their VLVT tokens for up to 5 years to get veVLVT. The longer the lock, the higher the amount of veVLVT voting power received.
To encourage continuous locking and sustained participation from stakeholders, the veVLVT balance declines over time until it reaches zero at the conclusion of the initial locking period. It can be increased by restarting the locking period.
veVLVT can be used for voting on general Velvet DAO decisions (e.g., new integrations). Upon voting, the veVLVT holder will receive additional VLVT tokens as rewards partially protecting from dilution. veVLVT can also be used to vote for $VLVT emission allocation across vaults. Fund managers will be able to set up "bribes" incentivizing tokenholders to vote for their vaults to receive higher rewards. The tokenholders will also receive additional emissions based on how the funds they voted for performed (and the size of the "bribes").
Velvet Founders Club NFT
An exclusive NFT confirming your OG status as one of the founding members of Velvet DAO, allows you to:
Double your reward points airdrop: Enjoy increased reward points which can be used to further engage with Velvet.Capital
Receive an additional airdrop up to 1,000,000 reward points: An additional way to gain more reward points to use within the Velvet.Capital ecosystem
Get a portion of royalty fees on secondary sales: A token of appreciation for your participation and support
Create a vault on Velvet.Capital marketplace: Use your NFT as a key to create a vault on Velvet marketplace that other users can explore
Double your voting power: Increase your ability to participate in platform governance & future development
Receive exclusive Velvet Founders swag: Get physical merchandise as a thank-you for being a part of the community
Access private in-person events: Opportunities for networking with Web3 founders, thought leaders & fund managers
Join a closed group of founders & fund managers - Velvet DAO Genesis: Connect with core team & other members to discuss protocol development
Access exclusive strategies by top partner Hedge Funds: Gain insights into the thinking of experienced industry professionals
To preserve the highest quality of the community and discourage flippers the initial NFT mint will be invite-only. Velvet's core team, investors and strategic partners will have a limited number of invites to distribute, if you're looking for an invite - please reach out to any of those groups.
Mint link: https://velvetdao.org
Last updated
