Airdrop and Staking Rewards
As a first step towards creating a decentralized community-managed ecosystem, 50,000,000 VLVT tokens will be allocated to early adopters via retroactive distribution & further staking rewards. There are three main parameters in determining the allocation:
- 1.User’s Total Value Locked (TVL) on Velvet — the more you deposit the more tokens will be allocated to you
- 2.Time using Velvet — the longer you keep your deposit the more tokens will be allocated to you
- 3.Start date — the earning rate per day will be decreasing exponentially, the earlier you join — the larger allocation you’ll earn
Aside from these parameters, to be eligible for the retroactive distribution you will have to hold Velvet products during several snapshot dates prior to the token launch. The snapshots will be publicly shared so that everyone can verify their eligibility for token distribution.
The fundamental key of this model is its exponential decay function, meaning that, all else equal, the earlier you are — the more tokens you’ll receive. At the same time, this model rewards the most loyal members as it takes into account time on Velvet. Finally, this model ensures that the largest participants are rewarded more for bringing more TVL to the platform.
As a token holder, you have the opportunity to drive Velvet’s development & growth by submitting proposals that can range from new integrations and protocol upgrades to new product proposals and earning more tokens especially if you’re actively participating in the overall governance.
There will be further opportunities to earn tokens by taking on the role of Velvet Ambassador or actively contributing to the protocol development & growth. VLVT tokens will be regularly distributed to contributors (current and future) through the Velvet Ecosystem Fund that will reward development, marketing, BD and other contributions to the Velvet protocol.