vVv Nodes
Last updated
Last updated
vVv nodes offer participants a chance to directly contribute and participate in the vVv ecosystem. Detailed information on vVv nodes and their specific utility within the ecosystem can be found on this page, emphasizing their role in the vVv ecosystem and rewarding community participation. Launchpads charge fees and keep a large portion of each project’s tokens to themselves. We adapt the feeless model of our venture capital business and apply it to the launchpad — meaning, the fees which normally would be charged by us flow back to you through our nodes.
The most important use case for our node system is emitting tokens into circulation relative to demand. Contrary to normal vesting schedules where tokens are emitted on a predefined time schedule, our innovative token emission system is partly based on platform activity. By rewarding node holders based on platform activity, something we call "activity yield" and "launch pool yield", we create a correlation between platform activity, token demand and token emission. This system is aimed to balance supply and demand.
Earning $VVV tokens from three distinct streams:
Activity yield
Linear yield
Launch pool yield
Each node within the vVv ecosystem is equipped with a predetermined hash-power capacity. Whenever an investment transaction occurs within the platform, a select number of nodes are randomly chosen to receive rewards. The specific rewards unlocked and released from the $VVV token pool within the node are proportional to the investment value of the transaction. Nodes with higher hash-power have a significantly increased chance of being selected in this randomized process, as the selection mechanism favors those with greater computational resources.
To illustrate, imagine a network with 5 active nodes, each possessing 50 units of hash-power. In this scenario, each node would have a 20% probability of being selected to earn yield when a single node is picked for reward distribution. The higher the individual node's hash-power, the more likely it is to be chosen for participation and the greater its potential earnings.
Upon activating a node by staking $VVV tokens, the platform initiates a 24-month vesting schedule to unlock the tokens locked within the node, providing a steady stream of linear yield to node holders.
Investments generated from project fees for launchpad use are distributed to our holders. We opt for a model where we take a portion of the fees in the projects tokens and distribute these investments to nodes. This eliminates the burden of fees in USD for these projects and benefits node holders. An added benefit for the projects launching on our launchpad is that their token gets decentralized to a large number of individual holders.
This also further creates a correlation between platform activity and token supply.
The tokens earned by vVv through its launchpad investments are distributed amongst active nodes using a points-based system.
For example, if a project named "X" seeks to raise $500,000 by selling their $TOKEN on the vVv launchpad, vVv may invest $25,000 by waiving platform fees. In return, vVv will receive a token allocation from the project without charge. The $TOKEN allotment vests over time, and vVv distributes the owned tokens as staking rewards to network nodes according to a proportional launch pool points system.
These points are calculated by multiplying the amount of $VVV staked in the node by a yield multiplier based on the node's tier. Prior to each new launchpad investment, a snapshot of the active node point distribution is taken to guide the allocation of the corresponding token rewards.
For instance, a platinum node that has staked 1,000 $VVV, with a 4.5x multiplier, would earn 4,500 points.
