Feb 17, 2022 4:08 PM
- Background on veTokens
- veTokens in the wild
- veTokens in Filecoin
- Sectors and IP
- What can we learn from veTokens?
Background on veTokens
- Issue: Voters buying tokens to vote and sell them
- Initial solutions: locking tokens for some time before voting
- Curve solution (veTokens): Users get voting rights proportionally on amount of tokens locked and locked time, generally the longer you lock, the more voting rights you have
veTokens in the wild
- veTokens to give DeFi rewards: the more time users lock them, the more they earn
- Curve rewards are a fixed amount to be distributed to those that lock tokens ⇒ there is an ever-growing need to lock tokens
- Yearn wanted to get the most amount of token rewards in curve and they asked people to lock their tokens with them
- If you lock tokens with Yearn, you lock them forever and they give you a yCRV that is tradable
- veTokens boom:
- Given the success of veCRV generating incentives for people to lock tokens, several protocols have introduced this
- Gnosis, Yearn, Balancer, PieDAO and many other are introducing veTokens
veTokens in Filecoin
Sectors and IP
- Sectors+IP can be seen as a veToken with precise contraints
- The more the amount of Sectors+IP is locked, the more is earned (linear)
- The more the time a Sector+IP is committed for, the more is earned (linear)
- FIL+ can be seen as a way to increase the value of a single sector
- By committing 10x, one gets 10x the power and the rewards
What can we learn from veTokens?
Below some potential ideas on what we could use in Filecoin.
- Miners that lock more tokens earn higher rewards (e.g. locking 10x tokens in a non FIL+ sector gives them 2x rewards).
- Note that it’s important that investing in storage should always be preferred over locking more capital
- Miners that lock sectors (or tokens) for longer earn higher rewards
The proposals are to “buy a higher quality multiplier” by either. This is additional to the power multiplier of FIL+.
- Allowing SP to lock a higher collateral than required (e.g. locking 10x tokens multiplies power by 2x, in an exponential increasing way (to motivate the locking of 10x))
- Locking for longer than the minimum required period (up to a maximum of 5 years).