Team Vertex Protocol plans to decentralize governance and provide additional utility by distributing power to the community once they launch.
Giving back power to the community is one of the features of true decentralization, it will be a gradual process starting with the main net launch which will be Q1 this year.
The team plans to decentralize governance and provide additional utility via the release of a governance token, VRTX.
The main function of VRTX will be to provide effective decentralized involvement in Vertex and also creating xVRTX a liquidity staking token, and voVRTX the protocol nontransferable token. Each of these tokens is crucial in rewarding different types of commitments to the protocol and rewarding stakeholders at various levels of governance and participation, the below image explains it all.
On main net users can be able to stake VRTX with a minimum unlock period of two weeks to receive a liquidity transferable token xVRTX . 1 unit of xVRTX will represent 1 single voting power, as well as a share of a pooled group of assets that will grow over time as it is supplemented with a share of revenue and token emissions. These represent rewards for those willing to bond their VRTX for a longer time to support the Protocol and participate in governance. xVRTX can then be re-staked or used to back the insurance fund, both of which will be rewarded according to Protocol needs.
voVRTX will be the users score for boosts to voting share and rights to certain rewards within the vertex ecosystem. It will be allocated for a number of activities including but not limited to: Holding xVRTX in voVRTX Boosting or Insurance Staking Using VRTX to pay for Trading fees and accrued crypto fee baskets.
By normalizing a unit of account for governance and rewards, the Protocol will be able to facilitate impartial distribution of power according to commitment signaled by holdings or by participation in Protocol operations.
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