Olympus Community Rewards: veBAL and vlAURA holders to get up to $8 million

03/25/2023 02:59 • Tech Trends • 157 views

On March 25th, it was reported that the Olympus community of the algorithm stable currency agreement has approved providing voting rewards of up to $8 million to veBAL and vlAURA holders in 2023, with a ceiling of $400000 per two weeks. The asset lists used for incentives include OHM, USDC, DAI, and FRAX.

The Olympus community has approved voting awards of up to $8 million for veBAL and vlAURA holders this year

Introduction

On March 25th, 2021, the Olympus community of the algorithm stable currency agreement approved providing voting rewards of up to $8 million to veBAL and vlAURA holders in 2023, subject to a ceiling of $400,000 per two weeks. The asset lists used for incentives include OHM, USDC, DAI, and FRAX.

What is Olympus?

Olympus is a protocol that aims to offer an alternative to traditional stablecoins like USDT, USDC, and DAI. It is a cryptocurrency that is intended to maintain a stable value against the US dollar. What sets it apart from other stablecoins is its algorithm design that enables automatic adjustments of its supply based on demand.

What are veBAL and vlAURA?

veBAL and vlAURA are governance tokens on the Olympus protocol. These tokens are used to vote on protocol changes and decisions, such as the allocation of rewards among stakeholders.

How will the rewards be distributed?

The rewards will be distributed to veBAL and vlAURA holders based on their voting power, which is determined by the number of tokens they hold and the duration of their holding period. The longer they hold their tokens, the more voting power they accumulate. Reward distribution will take place over the course of 2023 and will include assets like OHM, USDC, DAI, and FRAX.

Why is the community providing these rewards?

The community is incentivizing token holders to participate in governance decisions and shape the future of the protocol. By doing so, they are creating a greater sense of community and ensuring that the best decisions are made for the network’s longevity and success.

Benefits of holding veBAL and vlAURA

Holding veBAL and vlAURA not only grants you voting power but also earned rewards through staking. Additionally, holding these tokens can offer greater exposure to OHM, USDC, DAI, and FRAX.

Concerns and Risks

One possible concern is potential inflation caused by the influx of new rewards into the ecosystem. Additionally, a sharp decrease in price may occur if a large number of token holders decide to sell their tokens after receiving substantial rewards.

Conclusion

Olympus protocol’s decision to reward veBAL and vlAURA holders with up to $8 million in governance tokens has incentivized community participation in decision-making, reinforcing the network’s democracy. Moreover, it highlights the value and importance of holding these tokens and their ability to offer exposure to other assets.

FAQs

1. What assets are included in the reward distribution?
The reward distribution will include OHM, USDC, DAI, and FRAX.
2. How are the rewards distributed?
The rewards are distributed with respect to the voting power each token holder possesses, which is a function of the number of tokens held and the duration of the holding period.
3. When will the reward distribution take place?
The reward distribution will be completed over the course of 2023.

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