Rewards Boost
Vine Money incorporates a rewards boost system, designed to amplify rewards for users actively participating in the platformâs governance through VINE token staking. This mechanism plays a significant role in incentivizing long-term commitment and active engagement in the ecosystem.
Understanding Rewards Boost
Eligibility for Boost: Users who have staked and locked their VINE tokens as veVINE gain a lock weight that makes them eligible for enhanced emissions.
Boost Calculation: The boost is essentially a multiplier on the rewards that users can claim, based on the proportion of their locked veVINE weight.
Claiming Rewards: At launch, rewards are locked for 26 weeks, reducing by one every two weeks, reaching 0 one year after launch. Users may pay a withdrawal fee to exit their locks early.
Boost Calculation Mechanism
Calculating Rewards Boost: The maximum boost multiplier is typically set at 2x, meaning a user can earn rewards at double the rate of an un-boosted user.
Decay of Boost Rate: As a user's weekly claims exceed the amount permissible under maximum boost, the rate decays linearly from the maximum multiplier to 1x.
Recalculation: Boost rates are recalculated at the start of each week, refreshing the userâs potential to earn maximum rewards based on their updated lock weight.
Boost Delegation and Technical Aspects
Delegation of Boost: Users with significant lock weight can delegate their boost capability to others, setting a fee structure for the use of their boost. This delegation can involve complex mechanics like callbacks for additional functionalities.
Technical Considerations: The boost system is designed to maximize the distribution of rewards, and undistributed rewards due to reduced boost rates are returned to the unallocated token supply for future distribution and a more sustainable emissions structure.
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