Incentives & Emissions

CONE incentivizes lockers to lock more of their CONE tokens and use them to increase voting power, collect bribes and swap fees from the most productive gauges. The more CONE tokens they lock, the greater their voting power and the more fees they collect. The exchange incentives liquidity providers, too, through emissions rewards. The higher productivity swap fees a gauge has, the more veCONE votes it will attract. As users direct CONE incentive towards a gauge, the more liquidity providers get rewarded.

Improved ve(3,3) Emissions

The CONE supply does not have a maximum cap, but emissions are distributed in a system of decaying inflation, causing a diminished minting of CONE tokens over time. The percentage of CONE supply locked in veCONE determines the pace of emissions, so the higher the percentage of the supply locked, the fewer CONE tokens will be minted. Overall, this system results in a lower total supply in future.

Fair Launch

CONE Swap launched fairly, with no part of the supply going to pre-sales or VCs. Users can acquire or hold CONE with the peace of mind that no one has been granted a higher percentage of supply before the fair launch.

Governance Income

5% of the total CONE Supply will be distributed to Governance as income from emissions to fund the project's development and other building expenses.

Weekly Emissions

Weekly emissions are dependent upon the ratio of veCONE to total CONE circulating supply:

$veCONE.totalSupply() / CONE.totalSupply()$​

The result is that the more CONE users lock in, the smaller the rewards distributed to Liquidity Providers, the greater the deceleration of emissions and the smaller the future total supply.

Smoothed Emissions

The emission system is designed to hold CONE tokens more smoothly. CONE distributes 30% of the supply to veCONE. As the ve(3,3) emissions structure is affected by the % of locked tokens, a greater distribution of CONE to veCONE provides even more attractive incentives for users to lock veCONE. When the amount of CONE supply locked is sparse, the expectation is that the APR obtained by locking CONE will be higher.