Network Investors
Unlocking reward opportunities and governance power through vesting.
Last updated
Unlocking reward opportunities and governance power through vesting.
Last updated
Investors in the network's native token can stake (lock) their tokens to participate in governance and share in the networks revenue. By committing their capital, they are betting on the network’s success and are given tools to influence it. Key aspects of the investor role include:
Staking for veTokens (Governance Power): Investors can lock their Networks native tokens on Amplify for a defined period to receive vote-escrowed Tokens (veTokens), which grants voting rights on how network incentives are allocated. The longer the lockup, the greater the voting power obtained. This mechanism enforces long-term thinking focus on decisions that grow the overall network value.
Earning Fees and Rewards: veToken holders earn bribes from DApps competing for their votes. In Amplify, vote-locking investors receive 100% of the bribes from the DApps they support. This incentivizes voting for high-fee or high-bribe DApps, aligning investor profits with DApp growth.
Tokens can be vested for up to 4 years, with longer locks granting greater voting power. This influence lets you shape emissions distribution while earning rewards. DApps on Amplify offer bribes to sway votes, increasing your yield as your voting power grows.
Example:
4 years → Full voting power
2 years → Half voting power
1 year → One-fourth voting power
When you lock your tokens, the system records the reward rate at that time. If the network later lowers the reward rate, you can withdraw your tokens early until the new rate reaches the level you initially locked in. This ensures you aren’t stuck with a lower reward rate than what you signed up for, keeping the distribution fair for everyone. This system is described in more detail below:
Let
be the user's locked rate (Weekly Incentives Per Locked Token when they locked in),
be the current incentive rate,
be the pool cap (maximum allowed locked tokens),
be the current total locked tokens.
Then the allowed early unlock amount. is determined by the excess tokens above the new allowed limit. The new allowed limit is given by the pool cap scaled by the reduction factor:
If the current total locked tokens 𝑇 exceed the maximum early unlock amount 𝐸 s: