5. Token Economics
Token Utility and Governance
The Vaultinator Token (VLT) serves as the native utility and governance token of the Vaultinator ecosystem, providing multiple value-accrual mechanisms and governance rights to token holders.
Utility Functions
Fee Discounts: VLT holders receive discounts on protocol fees proportional to their token holdings, incentivizing long-term token retention.
Priority Access: Token holders gain priority access to new vault pools, strategies, and features before they're available to the general public.
Boosted Yields: Staking VLT alongside vault deposits provides yield multipliers, enhancing returns for token holders.
Premium Features: Certain advanced features and strategies are exclusively available to VLT holders based on their token holdings.
Liquidation Protection: VLT can be used as additional collateral for liquidation protection in the Collatinator component.
Governance Rights
VLT tokens grant holders the right to participate in the governance of the Vaultinator ecosystem through a decentralized autonomous organization (DAO) structure:
Proposal Creation: Token holders can create governance proposals for protocol changes, parameter adjustments, and new features.
Voting Power: Voting power is proportional to VLT holdings, with options for delegation to enable more efficient governance.
Tiered Governance: A tiered system ensures that critical protocol changes require higher approval thresholds than routine adjustments.
Treasury Management: Token holders can vote on the allocation and use of the protocol treasury funds.
Extension Governance: Governance extends to all ecosystem components, including Liquinator, Lendinator, and Collatinator.
Distribution Model
The VLT token has a fixed maximum supply of 100,000,000 tokens, distributed according to the following allocation:
Token Sale (Private + Public)
30%
30,000,000
Various (see below)
Team and Advisors
20%
20,000,000
2-year linear vesting with 6-month cliff
Ecosystem Growth
20%
20,000,000
3-year programmatic release
Treasury
15%
15,000,000
Controlled by governance
Liquidity Mining
10%
10,000,000
4-year programmatic release
Initial Liquidity
5%
5,000,000
Locked for 1 year
Token Sale Breakdown
The token sale allocation is further divided between private and public sales:
Seed Round
5%
5,000,000
$0.10
10% at TGE, 6-month cliff, 18-month linear
Private Sale
15%
15,000,000
$0.15
15% at TGE, 3-month cliff, 12-month linear
Public Sale
10%
10,000,000
$0.20
25% at TGE, 9-month linear
Vesting Schedules
Vesting schedules are designed to align incentives and ensure long-term commitment from all stakeholders:
Team and Advisors
6-month cliff period during which no tokens are released
Following the cliff, tokens vest linearly over 18 months
Monthly release schedule to prevent market disruption
Ecosystem Growth
No cliff period
Linear release over 3 years
Allocation controlled by governance votes
Focused on partnerships, integrations, and community building
Treasury
Initially controlled by a multi-signature wallet
Gradually transitioning to full DAO control
Used for development funding, security audits, and ecosystem support
Liquidity Mining
Programmatic release over 4 years
Decreasing emission schedule to reward early participants
Distributed across all ecosystem components based on strategic priorities
Fee Distribution and Revenue Model
The Vaultinator ecosystem generates revenue through various fee mechanisms, creating sustainable value for token holders:
Fee Types
Performance Fees: Charged on yields generated within vaults (4-10% based on vault type)
Withdrawal Fees: Applied to early withdrawals before lock period expiration (1-3%)
Service Fees: Charged for specialized services across extension protocols:
Liquinator: Trading fee share (10-20%)
Lendinator: Interest rate spread (0.5-2%)
Collatinator: Position management fee (0.1-0.5%)
Revenue Distribution
Revenue generated through fees is distributed according to the following allocation:
VLT Stakers
60%
Distributed to token stakers proportional to their stake
Protocol Treasury
20%
Funds ongoing development and operations
Insurance Fund
10%
Provides protection against potential shortfalls
Ecosystem Growth
10%
Supports partnerships and integrations
This revenue distribution model creates a sustainable economic loop that rewards token holders while ensuring the long-term development and growth of the ecosystem.
Staking and Rewards
The VLT staking system is designed to incentivize long-term token holding and active participation in the ecosystem:
Staking Mechanisms
Flexible Staking: Basic staking with no lock period but lower rewards
Locked Staking: Enhanced rewards for tokens locked for fixed periods:
3-month lock: 1.2x reward multiplier
6-month lock: 1.5x reward multiplier
12-month lock: 2.0x reward multiplier
Vault Boosting: Staking VLT alongside vault deposits to enhance yield:
Boost formula: Base Yield × (1 + (VLT Staked / Vault Deposit) × Boost Factor)
Maximum boost: 50% increase to base yield
Reward Sources
Staking rewards come from multiple sources:
Fee Sharing: 60% of all protocol fees are distributed to stakers
Emissions: Programmatic token emissions from the Liquidity Mining allocation
Governance Incentives: Additional rewards for active participation in governance
Reward Distribution
Rewards are distributed based on a weighted formula that considers:
Stake Amount: The quantity of VLT tokens staked
Stake Duration: The committed lock period (if any)
Governance Participation: Active voting and proposal creation
Ecosystem Engagement: Usage of Vaultinator ecosystem components
This comprehensive staking and reward system creates strong incentives for long-term token holding and active ecosystem participation, supporting token value appreciation and protocol growth.