Project Incentives
Projects can offer transparent incentives to veFAV and veTOKEN holders to encourage voting, early liquidity, and community support.
Project incentives (sometimes called "incentives" in DeFi) are rewards that projects offer to veFAV and veTOKEN holders to encourage specific behaviors that benefit the project and the ecosystem.
Unlike traditional launchpads where projects simply pay fees, FavOS enables projects to use incentives strategically to attract the right supporters, build early liquidity, and create a committed community before launch.
Types of Incentives
Projects can offer various types of incentives to attract and reward different stakeholders.
Projects offer rewards to veFAV holders who vote for their proposal
Examples:
- Project tokens (veTOKEN locked for 3 months)
- Stablecoins (USDC, USDT)
- Native tokens from the project
- NFT whitelist spots
- Early access perks
Benefits:
- Encourages informed voting on quality projects
- Aligns incentives between projects and voters
- Creates competitive market for attention
- Rewards active governance participants
Projects reward early LPs who provide initial liquidity after launch
Examples:
- Bonus token emissions for first 30 days
- Locked veTOKEN airdrops to LP providers
- Higher APR for early participants
- LP NFTs with ongoing benefits
- Revenue share from protocol fees
Benefits:
- Ensures healthy liquidity at launch
- Reduces slippage for all traders
- Attracts long-term aligned participants
- Creates stable price discovery
Projects incentivize quality feedback, testing, and community building
Examples:
- veTOKEN rewards for valuable comments
- Bug bounties for testnet participation
- Content creation rewards
- Translation and localization bounties
- Community moderator incentives
Benefits:
- Improves project quality through feedback
- Builds engaged community pre-launch
- Identifies and rewards contributors
- Creates network effects
Projects amplify reach by rewarding users who bring new participants
Examples:
- Referral bonuses in project tokens
- Leaderboard rewards for top referrers
- Locked veTOKEN airdrops
- Commission on referred investments
- Tiered rewards based on referral volume
Benefits:
- Organic growth through word-of-mouth
- Reduces marketing costs for projects
- Rewards community evangelists
- Creates viral loops
Why This Matters
The incentive pool isn't controlled solely by the project team. Any community member who believes in a project can add their own incentives to boost its chances of success. This creates a true community-driven launchpad.
Example 1: Early Backer
Sarah believes in an AI project and adds 5,000 USDC to the incentive pool to attract more veFAV voters. If the project succeeds, her tokens appreciate in value far more than the incentive cost.
Example 2: Strategic Partner
A DeFi protocol adds NFT whitelist spots to boost a complementary project's launch, creating synergies and cross-community engagement.
Strategic Alignment
Partners and believers can strategically boost projects they want to see succeed
Community Power
Strong communities can rally together to support deserving projects
Market Signals
External incentives show genuine market interest beyond the project team
Every veFAV holder who votes on a project receives a veTOKEN airdrop - vote-escrowed project tokens locked for 3 months. This ensures voters become long-term aligned stakeholders in the projects they support.
Benefits for Voters
- Automatic project token exposure
- Aligned with project success
- Pro-rata distribution based on vote weight
- Locked tokens prevent immediate dumps
- Staking rewards from project vault
- Governance rights in the project
Benefits for Projects
- Voters become token holders
- Reduced sell pressure (3-month lock)
- Committed community from day one
- Ongoing voter engagement
- Better price stability at launch
- Long-term stakeholder alignment
Example: TradePro AI Airdrop
💡 A voter with 50,000 veFAV receives 2,000 veTRADE (~$200 value), plus staking rewards from the project vault!
How Incentives Work
A transparent, on-chain process from proposal to distribution.
Project creates a launch proposal with their incentive budget clearly outlined
Smart contract holds incentive tokens in escrow until voting completes
veFAV holders review the proposal and cast votes. Projects with better incentives attract more votes.
After voting ends, incentives are distributed pro-rata to voters based on their veFAV weight
When projects or supporters deposit incentives (FAV, USDC, or other tokens), a 5% fee is automatically sent to the FavOS Treasury. This serves two critical purposes:
🐋 Whale Deterrent
Makes it more expensive for whales to unfairly influence voting through massive incentives. Encourages quality over quantity in incentive strategies.
💰 Protocol Revenue
Generates sustainable revenue for the protocol, used for buyback & burn (20% of treasury), development, security audits, and community initiatives.
Example: 10,000 USDC Incentive
Note: The 5% fee applies to all incentive deposits. Minimum of 25 unique voters required per campaign to receive emissions.
Transparency & Fairness
Built-in protections ensure incentives benefit the community, not just insiders.
On-Chain Tracking
All incentive pools and distributions are tracked on-chain with full transparency
Locked Tokens
veTOKEN incentives are locked for 3 months to ensure long-term alignment
Fair Distribution
Rewards distributed based on vote weight, preventing gaming and Sybil attacks
Community Oversight
Incentive strategies are public and subject to community review before voting
Strategic Considerations
How to make the most of the incentive system.
- Allocate 5-15% of token supply for incentives
- Use veTOKEN locks to attract long-term believers
- Combine multiple incentive types for maximum impact
- Front-load early liquidity incentives
- Reserve some budget for post-launch incentives
- Compare incentive value vs. project quality
- Consider long-term value, not just short-term incentives
- Diversify votes across multiple projects
- Account for locked veTOKEN opportunity cost
- Factor in potential token appreciation
The FavOS incentive model is inspired by the ve(3,3) tokenomics pioneered by Andre Cronje in Solidly. The "3,3" refers to game theory where all participants benefit most when they cooperate rather than compete.
Projects (3)
Get funding, liquidity, and engaged community through incentives
Voters (3)
Earn rewards for voting on quality projects that succeed
Protocol (3)
Grows stronger as more projects launch and more users participate
Ready to Participate?
Stake $FAV to earn veFAV, vote on projects, and start earning incentives from launching projects.