VXT Participation earing starts on Sep 14th
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VXT Participation earing starts on Sep 14th
In the earlier article, VirgoX made it clear that VXT will be the gateway token to Stablecoins and DeFi protocols. The outline of the VirgoX ecosystem is shown below:
In addition, for the benefit of readers, the VXT token allocation model is also reposted below.
Exactly 50% of the token will be earned by contributing liquidity to the VirgoX ecosystem. In this article, we introduce the first way users can provide liquidity to VirgoX and earn VXT.
On Sept. 14th, 2020, in addition, to have base interest payments, you will also be able to earn VXT by participating in the flexible savings or term deposits with six eligible assets: USDT, USDC, PAX, DAI, BTC, ETH (“Eligible Assets”)
The rules are shown below:
1) VXT bonus allocation formula (example)
By transferring any one of the Eligible Assets to any VirgoX flexible savings or term deposit plans, users are eligible to earn VXT. The bonus consists of two parts:
a) Bonus from participation in flexible savings or term deposits:
VirgoX will allocate Eligible Assets that were transferred to VirgoX financial products to various channels, including crypto loans and DeFi yield farming. Net returns from flexible savings or term deposit plans will be promptly transferred back to the platform so that interest payments may be distributed to the users and net returns in excess of published interest rates (“Excess Net Returns”) will be used to repurchase VXT.
70% of the daily Excess Net Returns from flexible savings and term deposit plans will be used to purchase VXT and attributed as a bonus distributed to all participants in the applicable plans. All VXT purchased for distribution will be proportionately distributed to each user based on each user’s % contribution to the total pool of crypto assets of that particular crypto asset type in the flexible savings and term deposit plans.
For example, if you deposit 100 USDT and there are 100 USDT in total in flexible savings plans and 600 USDT in term deposit plans on that day, then your share of the pool will be 1/7. As a result, if the bonus pool on that date was 7000 VXT, then you are entitled to receive 1000 VXT.
b) Bonus from holding VXT:
30% of the daily Excess Net Returns from flexible savings and term deposit plans will be used to purchase VXT and attributed to the VXT holders who participated in VirgoX flexible savings or term deposits. The % of VXT you are entitled is determined by the below formula:
The proportion of VXT out of the bonus pool payable to you = ½ * (Amount of VXT owned by you / Total amount of VXT owned by all users who are participating in the flexible savings or term deposit plans) + ½ * (Your contribution to the specific crypto asset pool / Total contribution to the specific crypto asset pool)
1) if you hold 100 USDT in flexible savings and there are in total 100 USDT in flexible savings and 600 USDT in term deposits
2) If you hold 100 VXT and there are in total 1000 VXT held by all participating users on that day
Your % out of the VXT holder bonus pool is
½ (100/700) + ½ (100/1000) = 12.14%
As a result, if the bonus pool on that date was 3000 VXT, then you are entitled to receive 364.28 VXT.
The philosophy behind the model is the more you contribute to the liquidity of the platform and the more VXT you hold while participating in an eligible financial product, the more VXT you are going to earn as a result of your contributions.
The same formula applies to other eligible assets.
2） Time of allocation
VXT will be distributed to eligible participant accounts on a daily basis.
For flexible savings accounts, users will receive interest payments on their allocated crypto assets + VXT on a daily basis
For term deposit accounts, users will receive interest payments on their allocated crypto assets at the end of the term but receive VXT on a daily basis
VirgoX is intending to offer more ways for users to earn VXT for their participation. The end goal is to bring the benefits of the ecosystem growth back into the hands of users. VXT as a governance token will play a great role in rewarding loyal users and allowing our users to make their voices heard.
We look forward to hearing your feedback!
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