📈Tokenomics v2.0
Last updated
Last updated
• veVOLT = Staked VOLT: Users stake VOLT and receive veVOLT, unlocking governance rights and rewards.
• Lock Duration: Longer lock periods increase veVOLT, governance power, and yield.
• Yield: a share of the trading fees are distributed to veVOLT holders.
• Governance: veVOLT holders vote on DAO proposals and liquidity incentives.
• Dual Rewards: Liquidity providers holding veVOLT earn both governance and liquidity rewards.
• Deflationary Mechanisms: 7.4 million VOLT are burned monthly, plus more from transaction fees.
The table below highlights the key benefits of staking VOLT and holding veVOLT:
veVOLT represents staked VOLT tokens within the Voltage Finance ecosystem. It provides both governance power and yield, encouraging long-term engagement. Users who stake VOLT receive veVOLT, which enables them to participate in decision-making and earn rewards from platform activity.
Users earn veVOLT by staking VOLT on the Voltage DEX or mobile app. A lock-up period ranging from 1 month to 2 years must be selected. The amount of veVOLT earned depends not only on the amount of VOLT staked but also on the duration of the lock. Longer lock periods result in more veVOLT and greater benefits.
Governance Power:
• veVOLT holders vote on DAO proposals, shaping the protocol’s direction.
• Longer lock periods increase voting weight, granting more influence.
Passive Yield Rewards:
• A portion of the trading fees are distributed to veVOLT holders.
• Longer lock durations result in higher rewards, encouraging long-term staking.
Control Over Liquidity Incentives: Weekly votes by veVOLT holders determine which pools receive incentives.
3x Rewards for Liquidity Providers: Liquidity providers holding veVOLT earn governance power, yield with staking, liquidity provision fees and additional protocol fees
Users who combine staking, governance, and liquidity provision unlock the highest rewards.
Voltage Finance introduced significant deflationary measures to reduce the total token supply and increase VOLT’s value:
VOLT Burn: 14.65% of all newly minted tokens (approximately 7.4 million VOLT per month) are permanently removed from circulation.
Transaction Fee Burn: A portion of DEX transaction fees is used to burn VOLT.
veVOLT aligns incentives between governance, staking, and liquidity provision, creating a sustainable, user-driven ecosystem. By staking VOLT, users unlock governance rights, earn passive income, and shape the allocation of rewards.
The tokenomics encourages long-term engagement, with higher returns and voting power given to those who commit for longer periods. Liquidity providers who hold veVOLT gain additional benefits, maximizing their involvement and earnings.
With the addition of deflationary mechanisms, the tokenomics model supports sustainable value by reducing supply and increasing scarcity over time. For users seeking to actively participate and maximize returns, staking VOLT to earn veVOLT offers an accessible and rewarding path within the Voltage Finance ecosystem.
Feature | Benefit |
---|---|
Staking & Holding veVOLT
Earn yield & Unlock governance rights
Locking VOLT longer
Increased Yield & voting power
Voting on liquidity pools
Control incentive allocations
Dual rewards for LPs
Earn Staking Yield + liquidity Provision rewards & Additional Protocol rewards
Deflationary Mechanism
Reduces supply exponentially