Networks

Network Benefits and Ecosystem alignment

The Network Foundation is the steward for operating incentives distribution, responsible for its initial configuration and long-term sustainability. It sets the rules (such as token emission schedules and fee distribution). In practice, the foundation’s role include:

• Incentives Provisions: The foundation is responsible for setting reward configurations and providing rewards to be distributed within their ecosystem. Steps for depositing and managing rewards can be found here.

• Governance Framework: By implementing a vote-escrow (ve) model for Amplify’s native token, the foundation encourages long-term participation in governance​. Only those who lock tokens gain voting power, aligning decision-making with committed stakeholders. This structure, inspired by protocols like Curve and Solidly, prevents short-term profiteering and emphasizes the network’s health over time.

• Long-Term Alignment: The foundation benefits when protocols thrive. It continually fine-tunes parameters (emission rates, fee splits, etc.) to maintain a balanced incentive structure. A well-calibrated system creates a virtuous cycle of growth: investors are attracted to stable returns, protocols see value in joining, LPs earn strong yields, and traders get a superior experience. All of this activity ultimately increases network usage and fees, which the foundation can reinvest, completing the growth loop.