Wombex Finance

<blockquote>It’s a time to dig deeper into WMX token, Wombex Warriors</blockquote><h3 id="strong-introduction-strong">Introduction</h3>Wombex protocol is a complex cryptoeconomics system that aligns incentives for different actors and enables positive feedback loops within the Wombat ecosystem. These incentives alignment and feedback loops are critical mechanisms for Wombex and Wombat growth.WMX token plays a central role in the Wombex cryptoeconomics model. This article explains WMX token functions and utility and is as simple as possible to allow all Wombex users to understand it well.<h3 id="strong-what-can-you-do-with-the-wmx-token-how-can-you-use-it-strong">What can you do with the WMX token? How can you use it?</h3>The first very important rule everyone should know:<blockquote>Only WMX that is locked in a special contract has certain functions in the Wombex protocol. Unlocked WMX doesn’t have any functions that can be used by the user.</blockquote>According to that, all further information will be related to explaining vlWMX functions.Function #1: share the protocol fees with other vlWMX holdersEvery vlWMX owner participates in protocol fee distribution. Wombex allocates 10% of mined WOM to vlWMX stakers. This reward is accrued once mined WOM tokens are harvested from Wombat contracts.Each vlWMX owner receives a share corresponding to the stake share in the overall vlWMX pool. For example, if there is 1m vlWMX and some address has 10k vlWMX, this address will receive 1% of all WOM received by vlWMX stakers.Function #2: you own a share of governance power in Wombat!The primary goal of Wombex is to accumulate as much veWOM as possible. So, Wombex works as a big veWOM treasury that belongs to all vlWMX holders! For example, if Wombex owns 10m veWOM and there is 1m vlWMX locked, it means that each vlWMX &#61; 10 veWOM.The most crucial feature of governance power in Wombex is that it can be sold on the bribe market and launched in the future. If some project wants to boost their rewards in Wombat, they need enough votes to supply a proposal. What do they do? They offer bribes to all governance participants to vote in their favor.There is no market data for bribes in Wombex since Wombat governance isn’t enabled yet. However, bribes are quite an interesting phenomenon for exploration. You can see historical on-chain data for Convex finance here if you want to learn more about it:https://dune.com/rplust/Vote-Locked-Convex-Token-(vlCVX)-BribesThe coolest thing here is that when somebody sells his voting power, it is not done forever:<blockquote>You can sell your voting power with every vote, endlessly.</blockquote>It’s like renting an apartment. It doesn’t matter how often you rent it: it’s always your apartment.Function #3: Wombex governance rightsOwning vlWMX grants a voice in Wombex community governance. Being a protocol owning a lot of veWOM and influencing the ecosystem, Wombex will be governed by its users. As planned, for now, users will decide on a liquidity mining program, WMX emission details, treasury usage and allocation, and many more.Function #4: Continuously rewarding strong handsWhen WMX is granted as rewards in Wombex, users have two options: (1) claim rewards and immediately vote-lock them and (2) claim rewards to the wallet without vote-lock. In case (2) 30% of the token amount is penalized (taken away) from the user for the purpose to be distributed to the “strong hands” — vlWMX lockers. The first distribution will be executed after the Bootstrap event ends. After it, the plan is to distribute WMX to vlWMX holders every two weeks. Note, these tokens aren’t “printed from thin air”; they are anyway mined by users via liquidity provision to the protocol.It means that vlWMX holders will continuously grow their share in total supply just for holding vlWMX.<h3 id="strong-conclusion-strong">Conclusion</h3>For using WMX you need to vote-lock it first. Once vote-locked, it has four functions described above. The most important “productive asset” function of vlWMX is ownership a share of governance power in Wombat that can be continuously sold on a bribe market. Note, that by vote-locking WMX you also joining the Wombex Warriors:) SocialsTwitter: <a href="https://twitter.com/WombexFinance" rel="noopener noreferrer nofollow">https://twitter.com/WombexFinance</a>Discord: <a href="https://discord.gg/wombex" rel="noopener noreferrer nofollow">https://discord.gg/wombex</a>Telegram: <a href="https://t.me/wombex" rel="noopener noreferrer nofollow">https://t.me/wombex</a>

Understanding WMX token

Table of Contents

Wombex Finance

Outros artigos publicados em 24 de nov. de 2022

The next step for Wombex: the bribe market

$GGTKN is NOW available for instant swaps!

The Nano Foundation and what3words: shared challenges, shared opportunities

Wombex Protocol metrics overview: 7/11/22

Plug and Play, AllianceBlock, Visa and Others to Launch a New Innovation Acceleration Program For...

🏆FBBank & Pexpay World Cup Celebration, $10000 Airdrop!

Join our free newsletter for daily crypto updates!