Voting

Voting on Emission and Incentive Parameters

Every three months (every 12 epochs), the project may initiate a vote to change the parameters of token emission distribution from the EYWA Treasure.

During this voting, the following parameters are determined:

1. The amount of emission per epoch: the total number of EYWA tokens allocated for the project’s development.

2. The percentage allocated to pool rewards (Pools incentives).

3. The percentage allocated to bond creation (Bonds incentives).

4. The percentage allocated to grants (Grants incentives).

5. The percentage allocated to attract external rewards to project pools (Bribes incentives).

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Voting Conditions and Restrictions

Voting frequency: Once a voting is initiated, the next one can only occur after three months.

Parameters for voting: All five parameters must be proposed for the voting:

1. Emission amount per epoch.

2. % for Pool incentives.

3. % for Bond incentives.

4. % for Grant incentives.

5. % for Bribe incentives.

Restrictions:

• The sum of percentages for parameters 2-5 must total exactly 100%.

• The emission per epoch cannot exceed the average emission since the DAO’s launch by more than 25%.

• Reducing emission is not restricted and can be lowered to 0, if DAO participants support it.

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Initial DAO Parameters

• Emission per epoch: 1 262 295 EYWA tokens.

• • 38% — Pool incentives.

  • 25% — Bond incentives.

  • 0% — Grant incentives.

  • 37% — Bribe incentives.

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Emission Distribution Algorithm per Epoch

1. Determining the total emission volume A certain emission amount E is allocated from the EYWA Treasure (for example, the initial 1 262 295 EYWA tokens or another value approved by the DAO).

2. Calculating staking rewards: The amount of staking rewards S is calculated.

3. Calculating token volumes for incentives After deducting the staking rewards, the remaining amount is distributed as follows:

$$Pools_{incentives} = ratio_{Pools} * (E-S)$$

$$Bonds_{incentives} = ratio_{Bonds}*(E-S)$$

$$Grants_{incentives} = ratio_{Grants}*(E-S)$$

$$Bribes_{incentives} = ratio_{Bribes}*(E-S)$$

Note:

• The sum of , ,and coefficients must be 100%.
• These parameters can be changed by DAO participants through voting.

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Voting for Pools

All veEYWA holders can participate in weekly (every epoch) voting to distribute Pool incentives among the pools.

What are Pool incentives?

Pool incentives are EYWA tokens, allocated from the EYWA Treasury each epoch to attract liquidity providers to the project. DAO participants vote on how this amount is distributed among the pools.

Benefit for Liquidity Providers

The more votes directed to a pool where a provider’s liquidity is located, the higher their reward in the next epoch.

List of Eligible Pools

Only those pools connected to the EYWA project are eligible for Pool incentives distribution:

1. Pools created by the project before the DAO launch.

2. Pools added via a DAO vote.

• Any DAO participant can initiate a vote to add a new pool.

• To include a pool in the list, the proposal must receive more than 50% of the DAO votes.

Voting Procedure

Voting takes place on a separate page in the DAO section. To participate, a user must:

1. Distribute all 100% of their votes among the available pools.

2. Press the "Vote" button to confirm their voting choice.

Before the end of the current epoch, a user can cancel their votes and vote again.

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Incentive Distribution Scheme Based on Voting Results

1. Vote Counting Process:

At the start of a new epoch, all veEYWA votes cast for pools in the previous epoch are counted. The percentages allocated by participants are converted into a specific number of EYWA tokens directed to each pool.

1. Formula for Incentive Distribution:

$$E_{pool X} = \frac{V_{pool X}}{\sum^n_{i=1}V_{pool i}} * Pool_{insentives}$$

where:

— the number of EYWA tokens allocated to pool X.

— the total EYWA token amount allocated to all pools in the current epoch

— the amount of veEYWA votes cast for pool X.

— the amount of veEYWA votes cast for pool i out of all n pools

Thus, the number of EYWA tokens allocated to a pool depends on the proportion of veEYWA votes that pool received relative to all votes.

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Reward Distribution to Liquidity Providers

At this stage, all incentives allocated each epoch to attract liquidity providers to the project’s pools are distributed via Angle Merkl service.

Funds Flow Scheme:

EYWA Treasure → Pools incentives → Gauge → Angle Merkl → Liquidity Providers

Liquidity providers can claim their rewards:

• Through the project’s pool interface.

• Through the Angle Merkl service interface.

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Boosting Liquidity Provider Income for DAO Participants

If a liquidity provider is also a DAO participant, they receive increased rewards through a boost coefficient B.

Boost Coefficient Formula:

$$B_{user} = 1.5 * \frac{D*v}{d*V} + 1$$

where:

— the user’s boost coefficient (cannot exceed 2.5)

D — the total sum of all deposits in the pool (in USD)

d — the user’s deposit amount in the pool (USD).

V — the total veEYWA of all users.

v — the user’s veEYWA amount.

Calculating the User’s Reward:

A maximum boost of B=2.5 does not mean the reward is simply increased by 2.5 times. The total Rewardall is divided among all liquidity providers taking into account their individual boost coefficient B.

User Reward Formula:

$$Reward_{user} = \frac{B_{user}*d_{user}}{\sum^n_{i=1}B_{i}*d_{i}}*Reward_{all}$$

Where:

— the user’s reward

— the total amount of tokens allocated as liquidity rewards

— the user’s boost coefficient

— the user’s deposit size (USD).

— the boost coefficient of user i.

— the deposit size of user i (USD).

Restrictions:

• Maximum boost coefficient: 2.5.

• Rewards are distributed proportionally, taking into account each user’s deposit and boost coefficient.

This system incentivizes DAO participants to provide liquidity, increasing their returns thanks to holding veEYWA.

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