Understanding Bribes In The Plutus Ecosystem
Seeing as bribes for $PLS lockers are right around the corner, we’ve put together a comprehensive guide to understand how bribes work in the Plutus ecosystem. Before we begin, it’s important to clarify that currently bribes will only come from Sperax and that the flow will slightly change after the release of our V2 tokenomics. As more projects begin to bribe PLS lockers and we release our new tokenomics, we’ll be updating our guides accordingly!
How Can You Receive Bribes?
Receiving bribes in our current model is simple — just lock your PLS into the monthly staking epoch. Upon implementation of our v2 tokenomics users will be required to lock their PLS as bPLS for 16 weeks to be eligible for bribes. Once your PLS is locked, you don’t have to do anything else — Plutus will distribute the bribes on your behalf as a part of the monthly rewards.
Where Do Bribes Come From?
The gauge system that Sperax is implementing is very similar to Curve’s gauge system. In this case, projects that have integrated pools with Sperax’s “Demeter” product have the opportunity to compete for SPA gauge emissions. Every week there will be a gauge vote to determine how the SPA from the emissions gauge is distributed. Here it’s important to remember that only veSPA holders are eligible to vote. Through plsSPA, Plutus currently owns over 400m veSPA, amounting to approximately 50% of all voting power. Effectively, veSPA holders can vote for their favorite pool or they can sell their vote to the highest bidder via bribes. The more votes a pool gets the more SPA it receives from the gauge. With the majority share of SPA’s voting power accruing to PLS lockers, they are set to reap the majority of the bribes!
The way this works in practice is simple — a project will offer veSPA holders bribe money through Sperax’s bribe system to vote for their pool. In the case of Plutus, all of our veSPA gauge voting power will be sold to the highest bidder to maximize returns for PLS lockers. Upon Plutus receiving the bribe revenue we take it and pass it through to PLS lockers.
Sperax is the first of Plutus’ many underlying governance projects to begin offering bribes to PLS lockers in return for their extensive voting power. This marks a profound shift in the fundamental value of PLS, as it will now always earn a steady revenue through bribes. The user experience of receiving bribes is seamless — earning bribes in the Plutus ecosystem is extremely easy and straight-forward. Users simply lock and enjoy the spoils of projects competing for their voting power! 💪🏻