> For the complete documentation index, see [llms.txt](https://docs.mindnetwork.xyz/minddocs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.mindnetwork.xyz/minddocs/product/mindv-ended/vfhe-explanation-ended.md).

# vFHE Explanation (Ended)

## <img src="/files/rZqQ80ft9IenoJqqTWRU" alt="" data-size="line"> vFHE Token &#x20;

vFHE is an ERC-20 token on MindChain that represents voting rights within the MindV, enabling participation in governance to ensure consensus and data security for AI and Proof-of-Stake (PoS) networks. vFHE can be obtained by participating in MindV Delegation and Voting or holding the relevant restaked assets.

## Benefits of Holding vFHE

By holding vFHE, users can access multiple benefits within the Mind Network, including:

* **Mind Network Airdrops**: Users may receive airdrops of tokens directly from the Mind Network as a reward for participation.
* **Partner Network Consensus Verification Rewards**: By participating in Partner Network consensus, users can receive rewards in the form of Partner Network airdrops.
* **Dual Rewards:** Users earn native rewards from partnered projects while simultaneously accumulating **vFHE** from Mind Network.

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## <img src="/files/bIUdHZyfhUF2wFsEb891" alt="" data-size="line"> vFHE Allocation

The Mind Network leverages vFHE tokens to empower user participation in governance and voting across various partner networks. The total vFHE distribution is allocated into two buckets:

* **Voting on Hubs**, which includes delegation and direct voting&#x20;
* **Token Governance Value (TGV),** tokenizing voting power from restaking partners&#x20;

### 1. vFHE Emission for Voting on Hubs :bulb:

To promote governance participation on Hubs, a portion of vFHE is dedicated to a daily emission to both delegation and direct voting on Hubs.

#### Daily Emission Rate for Each Hub

* **Initial Emission Rate**: vFHE will start emitting at a daily rate of approximately **714,285.71 vFHE** on **the first day of hub launch**.
* **Cap**: Emission growth continues for 21 days until reaching 15,000,000 vFHE or if the number of active wallets reaches 10,000, the daily emission will immediately increase to 15,000,000.
* **Sustained Daily Emission Rate**: Once the cap is reached, vFHE will be emitted at a steady rate of **15,000,000 vFHE** per day.
* **Daily Emission Rate for each hub**: Each hub will be evaluated based on the gas emission and vFHE delegation to determine the emission rate for each hub. All hubs will share the **15,000,000 vFHE** per day (based on **Sustained Daily Emission Rate**) based on their Daily Emission Rate.

<figure><img src="/files/oijsglNTwV6tDhxSQIZK" alt="" width="563"><figcaption></figcaption></figure>

### Earning vFHE through Participation on Hubs

Users can participate in Hubs in the following ways to earn additional vFHE rewards:

**a. Delegation**

* **Process**: Users delegate their vFHE to designated voters on Partner Networks. When these voters engage in voting rounds, delegators receive vFHE rewards.
* **Delegation**: Link for tutorials
* **Benefit**: Enables passive earning of vFHE through trusted voters’ activities in governance.

> For our first Wave, each Hub's maximum delegation is 200,000,000 vFHE, and 2,000,000 vFHE for each Delegator

**b. Direct Voting on Hubs**

* **Process**: Users can vote directly on Hubs, manually or through voter nodes with Mind or partner networks.
* **Voting on Hub**: Link for tutorials
* **Benefit**: Enables mining and rewards sharing through voting initiatives in the enrolled hub.

### 2. vFHE emission for Token Governance Value (TGV) :bulb:

vFHE tokens for TGV are distributed to users who hold or stake specific assets from Mind Network's partnered networks/projects. Users can earn vFHE in following ways:

#### a. Through Mind Partners

* **Eligibility**: Hold supported token from partnered networks/projects directly in your wallet. No locking or cross-chain transactions are required.
* **Reward Mechanism**: The Mind Network automatically rewards vFHE to the linked wallet address on Mind Chain based on the amount and duration of held assets.
* **Redemption Process**:
  * To redeem your vFHE tokens, visit the Mind Network dashboard ([dapp.mindnetwork.xyz/dashboard](https://dapp.mindnetwork.xyz/dashboard)) and click the “Redeem” button.

> **Example**: Holding 1 pufETH in your wallet will earn you 2 vFHE tokens.

#### b. Through Mind Network Restaking Pools (Ended)

* **Eligibility**: Stake LST/LRT assets directly on the Mind Network.
* **Reward Mechanism**: For each asset staked, users receive vFHE tokens equal to the quantity staked, enabling explicit voting power.

> **Example**: Staking 1 pufETH on the Mind Network pool will grant you 20 vFHE tokens.

#### **vFHE Emission Calculation**:

The emission formula for vFHE is influenced by various factors, calculated as:

vFHE = Amount of Tokens × Hours × Token Adjustment Factor × Partner Boost<br>

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