Update: veX Tokens and X Marketplace
Dear X Community,
The below blog post was originally published in January 2022. This provides greater detail on the mechanics and features of the veX token and has been updated to reflect current links & UI screen captures.
What is veX?
veX is based on the veCRV model from Curve Finance. Like veCRV, users who lock their X for veX are provided with governance rights and platform emissions. The time-lock is variable from 1 month to 4 years, and the longer a user locks their X tokens the greater the conversion ratio into veX.
For every 1,000 X tokens locked, the following veX is received:
A user’s underlying X token balance never changes, however, one’s veX balance decays over time as the unlock date is approached. This is because one’s veX balance is directly linked to time until unlock. For example:
- User A locks 1,000 X tokens for 4 years. As a result, they receive 1,000 veX.
- After 3 years, the veX balance for User A will decay to 250 veX tokens because they have 1 year left until unlock.
- After those same 3 years, let’s say User B then locked 1,000 X tokens for 1 year. Per the above chart, they will also receive 250 veX tokens.
In both situations — each user has 1,000 X tokens that will unlock in 1 year’s time, which is why a user’s veX balance will decay over time.
Users can access the veX Dashboard here or select “vex Dashboard” from the Tokenomics drop down menu.
Why is veX important?
X Marketplace is changing how NFT Marketplaces work. Creators and Collectors are not the product but core partners in the success of X. When X wins, everyone wins. To enable this deeper participation and shared success, X Marketplace needs both the ability for users to vote and participate in the growth/direction of X along with the opportunity to have “skin-in-the-game” by earning platform fee emissions. veX is the mechanism in which these two features are unlocked for the community.
How can I receive veX tokens?
Currently users can earn veX tokens as a Listing Reward for listing eligible NFTs. Please visit our Rewards page for more information on the Listing Reward program.
Users can claim the veX they have earned as a Listing Reward every 24hours at 12pm UTC +8.
I have X tokens, how can I lock my X tokens for veX?
Visit our veX locking page on the veX Dashboard and connect a wallet that is holding an X token balance
Input the number of X tokens you would like to lock (or click MAX to lock your entire balance) in the “Amount of X Tokens to Lock” field.
Select the length of time you would like to lock your X tokens by using the drop down selection to the right of the “Duration to Lock” field.
The “X : veX conversion ratio” will update based on the length of the time-lock.
The “veX You’ll Receive” field will update to reflect the amount of veX tokens you’ll receive based on your above inputs. Please note the amount will always be slightly less than the full conversion as the time decay starts immediately.
To initiate the time lock you will then need to first “Approve” the contract; this will cost gas. Once confirmed, “Lock” your X tokens as a second transaction. This will also cost gas.
Please note: Once your X tokens are locked, you will be unable to withdraw those X tokens until the date displayed under the “My veX Unlock Date”. There is no way to reverse this transaction once confirmed.
What else is important to know about veX?
Platform fee emissions will occur on a weekly basis. Fees will be swapped into WETH to facilitate the emission to veX holders. The claim process is manual. veX holders must visit the veX Dashboard weekly to claim their emissions. The “Claimable Amount” will update and veX holders will need to click the “Claim” button to receive their WETH allocation. This is allocated proportionately based on each user’s veX holding and costs gas to claim. Please note that if a user forgets to claim in a given week, that emission rolls over for the user to claim at a later date. Earned emissions do not expire.
Once a time-lock has been selected for a specific wallet address, any additional X token locks within that wallet must also be for the same length of time. Should a user wish to lock up additional X tokens for a shorter period of time, they will need to first move those unlocked X tokens to a new wallet address.
What are the contract addresses?