vFHE Explanation
Last updated
Last updated
vFHE is an ERC-20 token on Mind Chain that represents voting rights within the Mind Network, enabling participation in governance to ensure consensus and data security for AI and Proof-of-Stake (PoS) networks. vFHE can be obtained by holding the relevant restaked assets or participating in Mind Network Delegation and Voting.
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.
Original Staking Rewards: Users continue to receive rewards from the original LST/LRT asset projects while holding their vFHE tokens.
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:
Token Governance Value (TGV), tokenizing voting power from restaking partners
Voting on Hubs, which includes delegation and direct voting
vFHE tokens for TGV are distributed to users who hold or stake specific assets from Mind Network's partner protocols. Users can earn vFHE in two primary ways:
Eligibility: Hold Liquid Staked Tokens (LST) or Liquid Restaked Tokens (LRT) from partnered protocols 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) and click the “Redeem” button.
Example: Holding 1 pufETH in your wallet will earn you 2 vFHE tokens.
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.
The emission formula for vFHE is influenced by various factors, calculated as:
vFHE = Amount of Tokens × Hours × Token Adjustment Factor × Partner Boost
To promote governance participation on Hubs, a portion of vFHE is dedicated to a daily emission to both delegation and direct voting on Hubs.
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.
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.
