Tokens
Definition of RCT token economy
Last updated
Definition of RCT token economy
Last updated
$RCT — ERC-20 utility token of the protocol$RCTemissions currently have two key objectives:
Reach and maintain adequate liquidity to facilitate optimal trading conditions — $RCT are emitted as farming rewards to incentivize deep liquidity
Encourage decentralized governance — $RCT can be used to take part in the governance for continuous development of the platform. The long term goal is to achieve true decentralization.
veRCT — ERC-721 governance token in the form of an NFT (non-fungible token)veRCT is the vote-escrowed version of $RCT. Users can lock their $RCT tokens for up to 2 years to get veRCT. The longer the lock, the higher the amount of veRCT voting power received.
The lock period (also known as vote-escrowed period, hence the ve prefix) can be up to 2 years, following the linear relationship shown below:
100 $RCT locked for 2 years will become 100 $veRCT
100 $RCT locked for 6 months will become 25 $veRCT
To encourage continuous locking and sustained participation from stakeholders, the veRCT balance of users declines over time until it reaches zero at the conclusion of the initial locking period. veRCT positions can be increased, split up and resold on a secondary market. veRCT holders access the revenue generated by the platform.
The longer the vesting time, the higher the voting power (voting weight) and rewards the $veRCT holder receives.