Last updated
Last updated
A crucial aspect of the ve(3.3) model is the dilution protection rebases, occurring per epoch, designed to encourage users to lock their tokens early. This rebase concept draws inspiration from the OHM (3.3) model that gained popularity in recent years.
Here's a practical example to provide a clearer understanding of how the system operates EXAMPLE: 10% Dilution Protection
You possess 1,000 KELL, constituting 10% of the total supply, which was 10,000 KELL at that particular moment.
In this epoch, an additional 10,000 KELL was emitted to gauges, bringing the total supply of KELL to 20,000.
After the epoch concludes, you can claim your rebase and receive an additional 100 KELL added to your position. This results in you now having 5.5% of the total supply, with a total of 1,100 KELL out of the 20,000 KELL in circulation.
The above example is a simplified yet straightforward illustration aimed at elucidating the ideology and functionality of the rebase. Keller holds a firm belief that rebase and anti-dilution mechanisms are fundamental to the entire model. Without these safeguards, there is a risk of a dangerous misalignment with users.
Note: On Keller the weekly rebase amount is calculated with the following formula:
(veKELL.totalSupply ÷ KELL.totalsupply)³ × 0.5 × Emissions
The more people there are locking KELL, the more rebase you will receive.