Emissions
How Do The vePAN Emissions Work?
When utilizing the Reserves for emissions, the vePAN will provide incentives and rewards in PAN.
As stated, the PAN token utilizes a veNFT model, in which PAN tokens are locked up, and the locked tokens are wrapped, creating a staked position NFT, or spNFT. The spNFT (vePAN) holds a weight, determining how much 'stake' or 'power' you hold within The Pantheon.
Here come three important deviations from the standard ve mechanism;
ve lockers increase their holdings proportional to the weekly emissions
Assume 10,000 weekly emission, a total supply of 100,000,000, and a locked supply of 50,000,000. This would mean that 5,000 new tokens are emitted and provided as incentives, a 4.5% supply increase. Our goal is to ensure that ve lockers are never diluted, as such, ve lockers have their holdings increased by 4.5%.
ve locks are spNFTs
By extending locks into Non Fungible Tokens, it addresses the capital inefficiency problem of ve assets, as well as addresses concerns over future liquidity (should it ever be required).
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