Reward Mechanism

1. Integrated Rewards:

• Velix diverges from the traditional staking model by integrating rewards directly into the value of sveMETIS. As network rewards accumulate, the value of sveMETIS proportionately increases in relation to veMetis.

2. Rewards Distribution:

• All earned Metis are converted to veMETIS via the veMETISMinter.

• Every 7 days, 90% of the rewards generated are allocated to the sveMetis vault, with the remaining 10% contributing to the veMetis protocol revenue, which supports Velix’s growth and future protocol initiatives.

3. Metis Deposit/Withdrawal:

• Converting veMetis to Metis maintains a 1:1 ratio and is straightforward. However, the direct withdrawal process will be disabled until an optimized solution addresses the mandatory restrictions from the Sequencer node.

• There is an additional 7-day challenge period for potential sequencer node reactivation following withdrawal. Therefore, a sustainable and effective solution must be established to address the current system's withdrawal complexities. In the interim, users can exchange their veMETIS for Metis on various secondary markets (DEXes, etc.). We are dedicated to improving the liquidity of veMETIS/Metis in the secondary market and ensuring that the withdrawal process is expedited.