Rapid-Fire Q&A About veBoba and Our 2022 Campaign
Hey everyone, over the past few months, we got a ton of activity and interest from the community about our upcoming launch of veBoba! We’re glad to hear that community members, owners of Boba tokens, and developers are all interested in what can be done with veBoba, our implementation of veTokenomics.
So, let’s dive right in and provide answers to some of your most frequently asked questions on veBoba.
Questions About Voting
Q1: I’m Concerned About Thresholds. Is There a Voting Threshold?
Not at all! You can vote as much or as little as you like. Go nuts.
Q2: Does Everyone on Boba L2, all scaling solutions, get to Vote on Emissions? Or Is it Just Boba L2 ETH?
Everyone is encouraged to vote. It’s a shared pool of emissions across all L2s.
Q3: Say a User Delegates Their govBoba to Someone Else. Does That User Lose Voting Rights? Do They Have to Wait Until the Voting Round Ends? How Does This Work?
To better understand, this can be broken down into a simple three step process:
- You delegate per epoch (which is a one-week time period).
- As a user who actively focuses on bribes, you’re active in the ecosystem, looking for said bribes.
- You can re-delegate once the epoch is over.
- So keep your eye on the ball. This is an active community, and every participant needs to be alert, giving as much as they take in order to be successful.
Q4: Alright, What About the Person on the Receiving End of Delegated Voting Power? Is it Possible for That Person to Vote in Increments? Do They Need to Use All Their Power at Once? Also, Can This Person Use Their Delegated Voting Power to Earn Bribes or Emissions?
A lot of questions all at once, but let’s roll up our sleeves and address these issues one by one.
- On the receiving end of delegations, a person can vote in increments. No need to spend it all in one place.
- This person that has received delegated voting power can only use that power to earn emissions, not bribes.
- Delegated voting power is great, but it’s not an end-all, be-all, so to speak.
Q5: How Does Voting Power Decay in Relation to Your $Boba Tokens’ Locking Period?
Voting power decays linearly. For example, say you locked 1,000 $Boba tokens for 3 months. You would get 250 govBoba on that day. Congrats! Look at all that power.
After 1.5 months, that number is halved (in direct correlation with how much time is left on your locked $Boba tokens). You now have 125 govBoba.
At expiry (the end of your 3 months), you have 0 govBoba, but don’t give up hope. You can either withdraw, or if the power of voting really appeals to you, you can renew the lock period all over again. Thus you can feel all that first-day power rushing back. Go forth and dominate (democratically, of course).
Q6: Say I Use ALL My Voting Power at Once. Does That Mean I Can’t Vote on Anything Else Until That Voting Round is Over? Do I Get Voting Power Back?
You might want to rein in that power-trip a bit. If you use all voting power in one epoch, you can’t vote on anything else until the next epoch. On a similar note, the same goes with delegating. So keep in mind, with great voting power comes great voting responsibility.
Image credit: Sony Pictures
Q7: Do We See Any Rewards From Voting for Dev Grants or DAO Proposals?
In practice, you would see the emissions for the gauges that you vote on. But you don’t necessarily get paid to click a vote button. That’d be nice, but it doesn’t really work that way.
Questions About Locking and Staking
Q8: Can a User Lock Their $Boba Tokens, Receive govBoba, and Exchange Their GovBoba Voting Power for Weekly Emissions? Is This a Viable Way to Receive Direct Rewards in the Form of $Boba Tokens?
Not really, no. But you could lock your $Boba tokens and delegate your resulting govBoba to other projects, people that deem emissions valuable, and earn native tokens back (in this case, $Boba tokens).
Q9: Is It Possible to Market Dump the Protocol’s Native Token (Bribe Money) as Soon as the User Receives the Token? Is There a Vesting Period?
Yes, it is possible to sell immediately. No vesting period, just go for it, if you want.
Q10: Are Voting or Delegating the Only Ways to Gain Rewards? What About “Lock and Earn”?
“Lock and Earn” is definitely on our horizons. Once there are network profits, that is the next step for the Boba Network.
Questions About Emissions During the Campaign
Q11: While Voting, Is There an Option for “No Emissions”?
At the moment, there isn’t an option for no emissions. However, you can propose a gauge that would say “no emissions”, “lock up emissions”, “burn”. The only thing is that the gauge needs to be whitelisted.
Q12: Is There a Locked Period for the Protocol That Wins the Votes for the Emissions? Is There Transparency After Winning Emissions From the Project’s Side?
Yes — a gauge is a multisig in control by the protocol you vote on, and you can check the chain to see where the emissions go after being rewarded and voted on. Don’t worry, we whitelist every gauge to make sure it’s not a malicious actor.
Random Questions That Don’t Necessarily Fit But Need to Be Answered 😎
Q13: Other Than the Benefit of High Rewards, Are There Incentives for Good Behavior by Protocols?
Only protocols that have been whitelisted can open a pool, and that’s a process that has to be filed through the core contributor team. They will screen the whitelisting candidate accordingly. So no worries.
Q14: If a Developer Gets a Grant in $Boba Tokens, Are They Able to Sell That Grant Directly on the Market?
Yup. Nothing is stopping you from selling a grant to fund yourself.
Q15: How Is the Boba Network Currently Financed? How Many Transactions Are Needed for It to Break Even?
Currently, the Boba Network is financed by its amazing investors (Seed and Series A). And in the future, it will be financed by a Series B.
Around 3,500 transactions are needed per day to break even, however, with the multi-chain strategy, the amount of transactions per day will fluctuate. Whereas settlement costs and transaction patterns vary widely across different deployments.
Q16: Hmm… the Boba Network Doesn’t Seem to Process Enough Transactions. Other Than Hoping for Gauges and Participation, Is There Any Incentivization to Lock $Boba Tokens? Wouldn’t 5% APR Be Much Better?
There is incentivization to lock tokens. By locking $Boba tokens, you have several options available to you:
- You have a say on where emissions go by voting with govBoba
- Not interested in voting? You can forego the whole process and delegate to someone else who sees voting rights as valuable, collect those token bribes, and sell to USD (Check out market bribes from Convex, Balancer, and Redacted Cartel)
- Not to mention, you don’t have to lock. It’s completely optional
The thing is, 5% APR is not real yield, it’s actually just token inflation. It is better for token price to pay out real yield from the protocol rather than just inflating users.
We have more details about the Airdrop in our veBoba announcement, so go check it out!