New Reward Model & Sustainable Emissions

Objective

VPND is undergoing an exciting transformation with its new ability to mine the initial supplies of our two upcoming tokens, VAPE (for VaporDEX) and VAPOR (for VaporChain). With this new utility, VPND will have 10+ years of utility as a mining token for these two new tokens – it is our objective to make sure that your VaporNode continues to emit VPND for the full duration (and beyond) of these emission schedules.

In order to achieve true sustainability, we need to implement a redesigned reward model with an emissions velocity mechanic that will ensure that our daily emissions are aligned with what the reward pool can safely handle. Nodes will continue to earn VPND – except instead of rewards being 1% of a node’s TVL, it would be a fair-allocation of the day’s rewards (as determined by our new model) based on your share of total TVL.

What is the Global Distribution Model?

Global Distribution regulates emissions based on the balance of the VaporNodes VPND Reward Pool, ensuring that daily emissions are never higher than what the pool can handle. With our global distribution model implemented, we can create an infinite runway by regulating emissions based on the health of the pool vs. global TVL

Voting Options

1.) Implement the Global Distribution Model with a 0.27% Emissions Velocity Rate

2.) Implement the Global Distribution Model with a 0.54% Emissions Velocity Rate

3.) Keep the current model and allow the reward pool to empty

▫️ IMPORTANT: If Option #3 receives less than 50.0% of total votes cast, the largest vote tallied for Option 1 or 2 will be considered the approved model. If Option 3 receives greater than 50.0% of votes cast, it will remain as the reward model and the proposal will be considered rejected.

▫️ IMPLENTATION TIMING: If Option 1 or 2 are selected and approved by the community, the new rewards model would not go into effect immediately. The new reward model would go into effect when VPND Staking on VaporDEX goes live. Rewards would need to be claimed or compounded before the implementation to avoid pending rewards being recalculated based on the new model.

Details version of proposal: https://vaporfi633.sharepoint.com/:w:/s/VaporFi/EVI_gpkGvKdKlo19AklHj2oBpESV7Q2af6IbL2rBnHBLIQ?e=ZjvKfD

Slide deck from AMA on 8/25/22: https://vaporfi633.sharepoint.com/:b:/s/VaporFi/EYWH7sSW_LxDrfEqlcyp3ZEBFr8uFZbEctipYPGqRvCVew?e=qvEjla