🖨️Incentives & emissions
Last updated
Last updated
veSLIZ rewards people who lock more of their SLIZ tokens and use them to increase their voting power, collect bribes and swap fees from the most productive gauges. The more SLIZ tokens they lock, the greater their rewards will be. The exchange also rewards liquidity providers through emissions rewards. Pools with high rewards attract the most votes in general. Which attracts the liquidity providers creating a virtuous circle.
Weekly emissions start at 15M SLIZ and decay at 3% per week (epoch).
The SLIZ supply does not have a maximum limit, but emissions are distributed in a system of decreasing inflation, resulting in a smaller amount of SLIZ tokens being minted over time.
Also the percentage of the SLIZ supply that is locked in veSLIZ determines the rate of emissions, so the higher the percentage of the supply that is locked, the fewer SLIZ tokens will be minted. Overall, this system helps to balance the circulating supply and the inflation on SLIZ over time.
Weekly emissions are dependent upon the ratio of veSLIZ to total SLIZ circulating supply:
Emissions * (1 - veSLIZ.totalSupply / SLIZ.totalSupply)
The result is that the more SLIZ users lock in, the smaller the rewards distributed to Liquidity Providers, the greater the deceleration of emissions and the smaller the future total supply.
Also the higher the % of SLIZ locked in relation to the supply, the lower the SLIZ circulation supply will be in the future.
