70 Million VX and 4 Million VITE will be Burned, with Important Upgrade for ViteX

Changes to VX Release Curve, Dividends, and Staking as Mining

Published in

Vite Labs

4 min readDec 4, 2019

VX mining has been running smoothly on the ViteX exchange for over 2 months since it started back in September. We would like to, first, thank you all for your support, and second, announce the upcoming major upgrade on December 6!

The upgrade will include the following changes:

1. Updates on VX dividend reward rules;
2. VX release will be implemented according to the new curve;
3. All VITE in the dividend pool will be burned;
4. The adjustment of rules for staking as mining;
5. New function — Super VIP proxy staking;
6. Adjustments to referral as mining.

Updates on VX Dividend Reward Rules

* You will only receive dividends after staking your VX

Previously the reward rules stated that a minimum of 10 VX qualifies a VX holder to receive a dividend. With the upcoming upgrade, the following adjustments will be made to the previous rules:

A minimum of 10 VX must be staked to receive dividends;
Participant is entitled to receive dividends starting with the next distribution, after submission of staking request;
If a user revokes the staked VX, those staked amount will be released after a 7-day waiting period. No dividend will be received during this waiting period.

Users can enable automatic staking. After enabling, the VX obtained from mining will be automatically staked, whereas purchased VX will not be automatically staked.

VX Release will be Implemented According to the New Curve

Based on the results of the community voting on the VX release curve in October, the new curve will be implemented (https://medium.com/vitelabs/final-decision-of-vx-releasing-curve-9a4f535242d8).

We plan to burn a total amount of 70,671,202.2 VX On December 7. After the burning event, the total VX will become 29,328,797.8, which will be fully released in 8 years. The release of VX will start from 10,000 on December 7, 2019, and continue to increase for 90 days, reaching 50,000 on March 6, 2020 (10,000 on December 7, and 50,000 on March 6, 2020). The daily release of VX begins to decline after March 6, 2020. The specific release is as shown below.

(88 days is the period from the initial release date of VX to December 7, 2019)

All VITE in the Dividend Pool will be Burned

* About 4 Million VITE will be Burned on December 8

ViteX initiated a community vote regarding VITE-burning on October 12th (https://medium.com/vitelabs/announcement-adjustment-of-vx-release-ratio-voting-results-for-vite-burning-36726ca4723c). About 70% of the users supported the burning of VITE accumulated in the dividend pool (“VITE dividend”). On December 8th, all VITE dividend will be burned. After that, we will burn the VITE dividend accumulated from the previous day on a daily basis.

What this means, specifically:

Trading in VITE market no longer yields VITE dividends. However, BTC/ETH/USDT dividends still apply
The 1,000 VITE remitted for generating referral codes will be burned
The 10,000 VITE remitted to open a trading pair will be burned

Note: Unlike burning event on Ethereum, VITE will not have a blackhole address. Users can check the change of the total amount on block explorer to monitor how many VITE have been burned.

The Adjustment of Rules for Staking as Mining

* Increase Minimum Staking Period for VITE

All previously staked VITE can still mine VX. Users can immediately apply for revocation after staking, and the staked amount will be returned after 7 days. These 7 days won’t count as participation in staking, and therefore won’t earn rewards.

New Function — Super VIP Proxy Staking

With this new feature, a user can make someone Super VIP (SVIP) by staking on their behalf. After expiration of the staking, staked amount may be retrieved at any time to cancel the proxy staking.

SVIP is suitable for high-frequency and large-volume traders. After SVIP is activated, all base trading fees (0.2%) will be waived. 1,000,000 VITE must be staked to open the SVIP status, and the staked amount can be manually retrieved after 30 days. Currently, VIP status does not support proxy staking.

Adjustments to Referral as Mining

* Higher Benefits for Both Parties in a Referral

A user (User A) can generate an invitation code on ViteX and invite another (User B) to join the ViteX platform.

User A will receive the following benefit:

User A will get additional VX in the following manner: On each day, 5% of User B’s trading fees (from trading mine-able pairs) will be included in User A’s trading fees for the purpose of calculating User A’s VX allocation.

User B will receive the following benefits:

User B will also enjoy a permanent 10% discount on total trading fees, which is the sum of operator fee and base fee.
For purpose of calculating User B’s VX allocation, his trading fees will be increased by another 2.5% (that is, the fees will be multiplied by 1.025).

Summary

We hope the above changes will benefit the current users and miners, as well as encouraging more people to trade on ViteX and mine VX. We will release the plan of the upcoming hard fork soon for implementing those changes.

Thank you for your support of ViteX. We are happy to hear any comments or suggestions.

** All rights are reserved by Vite Labs.

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