Incentives & Inflation
veLIQUIFY rewards users who lock more of their LIQUIFY tokens, utilizing them to enhance their voting power, collect bribes, and earn swap fees from the most productive gauges. The more LIQUIFY tokens locked, the greater the rewards. The exchange also incentivizes liquidity providers through emissions rewards. Generally, pools with higher rewards attract the most votes, drawing in liquidity providers and creating a virtuous circle of growth.
Emission Schedule
Weekly emissions commence at 1,300,000 LIQUIFY and decay at 3% per week (epoch). While the LIQUIFY supply has no maximum limit, emissions are distributed through a system of decreasing inflation, leading to a reduced number of LIQUIFY tokens minted over time.
Furthermore, the percentage of the LIQUIFY supply locked in veLIQUIFY impacts the emissions rate; a higher percentage of locked supply results in fewer LIQUIFY tokens minted. This system helps maintain a balance between the circulating supply and inflation of LIQUIFY over time, promoting stability and sustainable growth.
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