Dilution Protection (Rebase)

A key function of the ve(3,3) model is the dilution protection rebases, which occur per epoch, to incentivize users to lock their tokens early on. The rebase is a nod to the OHM (3,3) model that was popularized the past couple years.

A practical example to give you a better understanding of how the system works:

EXAMPLE: 25% Dilution Protection:

Note: NILE has a 25% rebase, increasing 1% per epoch until 50%

You have 1000 NILE, which is 10% of the total supply of 10,000 NILE at the time.
During this epoch, another 10,000 NILE was emitted to gauges, pushing the total supply of NILE to 20,000
You can claim your rebase after the epoch ends and receive 250 extra NILE added to your position. This makes you now have 6.25% of the total supply, at 1250 NILE out of 20,000 NILE

The above is a crude but straightforward example that should simply explain the ideology and functionality of the rebase.

Previousve(3,3) Fundamentals NextveNILE (veNFT)

Last updated 1 year ago

Dilution Protection (Rebase)

A practical example to give you a better understanding of how the system works:

EXAMPLE: 25% Dilution Protection:

Note: NILE has a 25% rebase, increasing 1% per epoch until 50%

You have 1000 NILE, which is 10% of the total supply of 10,000 NILE at the time.
During this epoch, another 10,000 NILE was emitted to gauges, pushing the total supply of NILE to 20,000
You can claim your rebase after the epoch ends and receive 250 extra NILE added to your position. This makes you now have 6.25% of the total supply, at 1250 NILE out of 20,000 NILE

The above is a crude but straightforward example that should simply explain the ideology and functionality of the rebase.

Previousve(3,3) Fundamentals NextveNILE (veNFT)

Last updated 1 year ago