VRSW Utility

VRSW utility will be composed of the following:

• Staking/locking VRSW to gain additional rewards for liquidity providers. Locking or Staking VRSW tokens provide an added boost to LPs, in the form of newly minted VRSW tokens.

• Staking/locking VRSW to redeem voting rights (in the form of veVRSW) and participate in decision making of the protocol. Thus, a new veVRSW is minted every time a VRSW token is staked or locked, and the DAO voting power is derived from veVRSW holdings, relative to the total veVRSW tokens.

• VirtuSwap DEX has a “Protocol Rewards Switch”. If and when the VirtuSwap DAO decides to turn it on, staking or locking VRSW will result in receiving rewards in the form of newly minted VRSW tokens.

VirtuSwap Tokenomics is based on the three aforementioned functions, with an improvement compared to existing DEX utility structure. Importantly, it is not necessary to lock VRSW tokens in order to receive a reward boost; and incentives for both staking and locking are achieved within a single elegant mechanism.

Note that for each of the above utilities, lockers get higher rewards than stakers; and the longer tokens are locked/staked - the higher the reward boost!

For a deeper understanding of the reward boost calculation and VRSW Utility, read our tokenomics Medium article, available here.