Token Distribution
Last updated
Last updated
The liquidity mining program accounts for 55% of VTX token supply and is made up of three components:
xPTP and zJOE staking
PTP and JOE conversion is the most important feature of the Vector protocol for generating long-term value for VTX. Thus, it is important for us to allocate a substantial portion of our emissions to xPTP and zJOE stakers.
Platypus stablecoin and JOE LP deposits
In the long-run, it is important for Vector to attract as much TVL as possible. As our TVL from Platypus and Trader Joe increases, the amount of fees generated by Vector will increase as well, generating value for xPTP and zJOE stakers, and VTX stakers/lockers.
LP staking
In order for Vector Finance to succeed, we will need to have liquid capital markets in which users can enter and exit positions with ease. This goes for all of our liquidity pools (xPTP-PTP, zJOE-JOE, and VTX-AVAX) which we will host on Trader Joe.
The distribution of these emissions will follow a logarithmic function, where the emission rate is higher earlier-on and slows down over time. Incentivizing high yields for our earliest users ensures that Vector builds a solid base of PTP and JOE early on, increasing the amount of vePTP and veJOE we can earn in the long-run, which will result in long-term sustainable value and rewards for users into perpetuity. See Liquidity Mining Schedule for the exact emissions schedule.
Since our primary source of emissions will follow a fixed distribution schedule, we decided to allocate 15% of token supply to bonus emissions. These emissions will be used on an as-needed basis. If we see that our current emission rate is not high enough to be competitive with other protocols or the broader market, we will tap into our bonus emission supply to further incentivize rewards.
We’ve allocated 8% of our VTX token supply for the Vector team and its future employees. This will have a 3 month cliff and then vest linearly over the following 18 months.
Vector is built by the devs from Magnet - a DAO which is focused on building innovative projects on Avalanche. Since Vector would not exist without Magnet, we decided to split our team tokens in half. Instead of the team getting 16% (a standard team allocation), the team is getting 8% and Magnet is getting 8%. These tokens follow the same vesting schedule as the team and advisors - 3 month cliff and then vested linearly over the following 18 months. MAG tokenholders will receive their allocation by staking MAG on the Magnet protocol.
We’ve allocated 1.5% of our VTX token supply for our advisors. This will have a 3 month cliff and then vest linearly over the following 18 months.
Vector is extremely excited to be using Rocket Joe in order to bootstrap liquidity for our governance token, VTX. By utilizing Rocket Joe, we will generate initial liquidity for our governance token, VTX, in the form of VTX-AVAX LP. Vector will own 50% of all liquidity raised during the Rocket Joe launch, meaning that we won’t have to incentivize as much liquidity in the long-run. Protocol-owned liquidity is an extremely important aspect of any project. We will be allocating 4.5% of our token supply for the Rocket Joe launch.
These rewards will be broken down as follows:
4.0% of tokens for the launch
0.5% bonus tokens for participants
This means participants will receive a 12.5% bonus on their contributions
The launch will start on 2/24/22 at 6pm GMT and deposits will end on 2/26/22 at 6pm GMT. Users will be able to withdraw until 2/27/22 at 6pm GMT. Please see Rocket Joe documentation for more details: https://docs.traderjoexyz.com/main/trader-joe/rocket-joe
The LP tokens received from the launch will be locked for 3 days. Once the tokens are unlocked, a Trader Joe Dual Farm will begin, where users can earn both JOE and VTX tokens from staking their LP tokens on Trader Joe.
5.0% of our token supply will be allocated to our community treasury. This treasury will be used for various purposes such as bug bounties, partnerships, marketing, and community engagement.
We will be airdropping 3.0% of our token supply to the top vePTP holders, based on vePTP balances as of February 20th at 5pm UTC. (We've decided to cut off wallets below a certain threshold since the airdrop value would be less than the gas price to claim.) 10% of the airdrop will be available at TGE and then the remainder will unlockvest at certain dates: TGE: 10% 3 months: 10% 6 months: 20% 9 months: 30% 12 months: 30% + bonus tokens Total: 100%
If a user claims their VTX before the 12 months are over, they will forfeit the amount that is still locked. This forfeited amount, and that will go to a “bonus” pool which will be distributed pro rata to holders who have yet to claim at the 12 month mark.
