VIP51 Use Fixed Speed vesting in VRT Swap

The initial proposal for Venus Tokenomics says that “the newly acquired XVS exchanged from VRT at the exchange rate of 12,000 VRT to 1 XVS will be vested with a linear unlocking time of 12 months”. To decrease the sell pressure on XVS and ease the pressure on the XVS Community during this transition period, we propose to set a global daily limit for swaps – all VRT holders collectively can swap no more than 5022.83 XVS/day.

With the global limits in place, we can relax the vesting requirements a bit. Here we propose an alternative vesting option that will allow holders of small VRT amounts to get their XVS faster – vesting with fixed distribution speed.

This proposal will not cause any on-chain action, and the team will not vote for any of the options.

“For” – Use fixed speed vesting

When a user receives XVS from the swap, these XVS get locked in a separate vesting contract. The contract calculates the “available for withdrawal” XVS, adding some XVS every block to the holder’s “available for withdrawal” sum, up to the total vested amount.

If the community chooses this option (i.e. votes for the change), this will not delay the implementation.

This kind of vesting will, of course, allow people to split their holdings to multiple addresses to enjoy faster vesting, which will increase the sell pressure on XVS during the first days. On the other hand, this shouldn’t be a problem if we add a global daily limit of 5022.83 XVS/day for swaps.

“Against” – Use vesting with fixed unlock time (initial proposal)

If the community chooses this option (i.e. votes against the change), we will follow our initial proposal – vest XVS linearly for one year since the last swap, regardless of the vested amount.

This means that, e.g., if you vest 365 XVS, you will be eligible for 1 XVS/day, and if you vest 0.365 XVS, you can withdraw 0.001 XVS/day.

A counter-intuitive implication of this option is that your unwithdrawn tokens will get re-vested if you perform a second swap. For example, if you vest 100 XVS, wait for 6 months, and then vest another 0.00000000001 XVS, your remaining (still locked) 50 XVS will be re-vested for another year (instead of six months without the transaction with a minuscule amount).