Dolphin.fm
  • 🐬Overview
    • Introduction
    • Background
    • The Vision
    • Roadmap
    • Core Components
  • 🌊Product Manual
    • Stage 1: Knowledge Discovery Trading Engine
    • Onboarding Wizard
    • Knowledge Discovery Trading Engine(KDTE)
    • One-Click Trading
    • One-Click Investment
      • Dual Investment with Downside Protection
      • Single Asset Yield Farming with Impermanent Loss Protection
    • Stage 2: Agent Engine and Ecosystem
  • 💡Technology
    • System Architecture
      • Online Service
      • Knowledge Service
      • AI Infrastructure
      • AI Agent Infrastructure
    • Large-Language-Model Specialized in Investing
      • Domain Knowledge
      • Tabular Understanding
    • Quantitative and Machine Learning Models
      • Main Strategy for Hedging Impermanent Loss
      • Time Selection and Loss & Rebalance Strategy
      • Volatility Predictions
  • 💎TOKENOMICS
    • Introduction to $DOLFM
    • $DOLFM Token Utilities
    • Quantitative Token Self-regulating Mechanism
      • Buyback & Burn Mechanism
      • Revenue-based Minting Algorithm
      • veToken Model
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  1. TOKENOMICS
  2. Quantitative Token Self-regulating Mechanism

veToken Model

PreviousRevenue-based Minting Algorithm

Last updated 10 months ago

Dolphin.fm applies and enhances the vote-escrowed (veToken) model, aiming to encourage long-term decision-making, align incentives across protocol stakeholders, and create favorable supply and demand dynamics for price appreciation.

$veDOL Staking and Redemption

Users obtain $veDOL by staking $DOLFM. The longer the staking period, the more $veDOL is earned. $veDOL cannot be transferred or sold but can be redeemed for $DOLFM every quarter. The redemption quota accumulates linearly from the first day of staking. For example, if a user is to receive N $veDOL over the locking period, each quarter of the first year, N/4 $veDOL can be redeemed into $DOLFM.

Formula for $veDOL Accumulation:

where x is the number of years.

When a user decides to stake $DOLFM, they start receiving $veDOL at a declining rate over time. The longer the staking period, the higher the initial rate.

Unlocking $DOLFM

  • Wait for Lock Period Expiry: Unlock for free when the vote lock period expires.

  • Early Unlocking: Users can unlock $DOLFM at any time, but early unlocking deducts rewards by reducing the amount of $veDOL received from the staked $DOLFM. The deduction rate is the minimum value between 0.75 and the time until unlock divided by 2.

Example:

The APR is 22% if the price remains constant (real APR could be 220% with projected price increases). The distribution rate over time is:

Governance Voting

$veDOL holders participate in governance voting on key protocol decisions:

  1. Buyback and Burn: Decide the portion of the treasury fund for buyback and burn every quarter (initially 50%).

  2. Minting Algo parameters: Set the speed of new token generation.

  3. Product Currency Support: Determine which tokens are supported by the built-in products.

  4. Minted Token Distribution: Allocate the distribution of newly minted tokens into each vault based on $veDOL votes, incentivizing product participants to stake $veDOL for higher returns.

A user stakes 10,000 $DOLFM for 2 years, earning

After 1.5 years, if the user unlocks, they receive $DOLFM and have gained 4261 $veDOL.

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