LP Proposal

Proposal #1 – VPND LP Rewards Allocation

VaporFi is proposing a strategic adjustment to the allocation of rewards from the liquidity pool (LP) in an effort to optimize the benefit for the community and reinforce the overall sustainability of the ecosystem. This initiative is centered around redirecting a portion of the rewards toward mechanisms that can provide long-term value to VaporFi users.

Phase 1: AVAX Conversion and Community Growth As part of this process, the AVAX held within the LP will be converted into USDC. These funds will then be placed into the EARN USDC contract, allowing Vape Miners to earn USDC through their participation. This decision aligns with VaporFi’s ongoing commitment to empowering its community and fostering economic incentives that encourage engagement and stability.

Phase 2: Community Decision on VPND Allocation A key element of this proposal is the community-driven vote on the allocation of VPND retrieved from the VPND/AVAX LP. VaporFi acknowledges the importance of involving its users in shaping the ecosystem and is providing three primary options for consideration:

#1 - Add VPND to the Node Rewards Pool – Allocating VPND to the rewards pool would provide additional incentives for existing participants in the ecosystem. This approach seeks to increase engagement when the marketplace goes live and reward loyal community members by adding to the rewards pool.

#2- Stake VPND to Earn Vape – VPND could be strategically used to earn VAPE for the TEAM. Knowing the team pairs any VAPE earned with USDC to add to the Existing Liquidity pool on VaporDEX. This is for long term growth and strength of VAPE token using the ecosystem.

#3- Burn VPND – By burning VPND, supply is reduced, which may enhance scarcity and potential value appreciation over time. This deflationary mechanism can help strengthen the long-term viability of the token by minimizing circulating supply.

#4- 50/50 - 50% to rewards pool and 50% to stake for $Vape. A mixture of options 1 and 2 to give a more diverse option.

Through this proposal, VaporFi aims to strike a balance between token utility, community benefit, and ecosystem sustainability. The upcoming vote will provide users with a say in determining the best course of action for VPND, ensuring that the community remains at the heart of all strategic decisions.