♟️Vote Escrow Mechanics
Last updated
Last updated
FFC Coin implements an innovative v(3,3) mechanics, amalgamating two pivotal DeFi concepts: Vote-Escrow, inspired by Curve, which incentivizes prolonged token holding, and Staking/Rebasing/Bonding, the (3,3) game theory, introduced by Olympus DAO.
The v(3,3) mechanism within FFC Coin acts as a rewarding framework for activities contributing to the platform's prosperity, such as liquidity provision and long-term token retention. Liquidity providers are rewarded with vFFC emissions, while vFFC holders benefit from protocol fees, rebases, governance rights, and incentives. This pioneering approach cultivates a vibrant and inclusive ecosystem, fostering engagement and rewarding participation across all stakeholders.
In FFC Coin's ecosystem, the token distribution rate within FFC undergoes weekly adjustments, influenced by the circulating supply rate. A minimum weekly reduction of 1% in previous emissions ensures a controlled and sustainable distribution over time.
Ve(3,3) in FFC Coin introduces a unique approach by incentivizing fees alongside liquidity provision. This mechanism aligns the interests of token holders and liquidity providers, aiming to create an optimized system. As participants lock their funds, they receive 100% of the fees generated by the pools they vote for. This encourages pools to set higher fees, promoting a sustainable and efficient revenue-sharing model for the ecosystem.
Tokenizing the lock position in FFC Coin enables a single address to own multiple locks, with balances being cumulative and contributing to the overall vFFC balance. This feature allows locks to be traded on secondary markets and enables participants to borrow against their locks in future lending platforms.
By extending locks into Non-Fungible Tokens (NFTs), FFC Coin addresses the capital inefficiency problem of ve assets and alleviates concerns over future liquidity requirements. The NFTization of vFFC presents the ideal solution to the liquidity challenge for voting escrow.
