Protocol Mechanics
Deep dive into FavOS ve(3,3) epoch system, voting power decay, vault mechanics, and revenue distribution.
[FAV] --lock--> [veFAV] --(vote this epoch)--> [Campaign Gauges]
| (effective next epoch)
| |
| +------------------+------------------+
| | |
[Staker Pool] <--- protocol revenue + tail emissions --- [Weekly Emissions Pool]
| |
v v
veFAV stakers earn APR Campaign Vaults receive emissions
^ |
| | auto-split each epoch
| v
(Incentive fees, launch fees, tax share) Dev (55%) / Backers (20%)
/ Contributors (15%)
/ Early Users (5%)
/ Protocol (5%)
[Incentive Deposits (FAV/USDC)]
|--5% fee--> [FavOS Treasury --> 20% Buyback & Burn]
|---> distributed pro-rata to [voters of that campaign]
After Graduation:
[Token Trades] --1% tax--> [Creator (40%) / Vault (30%) / veTOKEN & LP (20%) / Burn (10%)]Vote Delay
Votes cast in Epoch N take effect in Epoch N+1, preventing last-minute manipulation
Dual Rewards
Voters earn from both protocol APR (continuous) and campaign incentives (weekly)
Auto-Split
Campaign vaults automatically distribute emissions to all stakeholder groups
Weekly Epoch Flow
6 key phases that repeat every 7 days (Thursday to Thursday)
Core Metrics
Key parameters and requirements in the ve(3,3) system
Weekly cycles (Thursday to Thursday)
Votes take effect next epoch
Required per campaign for emissions
To FavOS Treasury (whale deterrent)
4x voting power multiplier
0.25x voting power multiplier
Unlike linear decay, FavOS uses an exponential decay function (λ = 2.0) to gradually reduce voting power over time. This creates a smoother participation curve and encourages users to re-lock before their power becomes negligible.
Full voting power at lock
Gradual decay begins
Moderate decay
Significant decay
Minimal power, re-lock encouraged
Why Exponential Decay?
- Keeps contributors' influence meaningful longer than linear decay
- Smoothens participation curves for campaigns and vaults
- Encourages strategic re-locks before power drops too low
- Gentle tail prevents power from reaching absolute zero
Protocol Vault (FAV)
Revenue sources and distribution to veFAV stakers
Fees from successful project launches
Tax on graduated project token trades
Fee on all campaign incentive deposits
Weekly $FAV emissions to sustain ecosystem
20% of FavOS Treasury is allocated to buyback $FAV from the market and burn it, creating deflationary pressure and supporting token price.
TOKEN Vaults (Graduated Projects)
Revenue sources and distribution to veTOKEN stakers for individual projects
APR = Simple Rate
Annual Percentage Rate shows the simple yearly return without assuming compounding. This is more accurate for:
- • veFAV staking (manual claim required)
- • Campaign incentives (epoch-based, not auto-compound)
- • Protocol revenue sharing
APY = Compounded Rate
Annual Percentage Yield assumes you reinvest rewards. Only use APY if:
- • Auto-compounding is available
- • LP farms with auto-staking
- • Vault strategies with auto-reinvest
FavOS Standard
We display Epoch APR as the default metric (e.g., "12.4% APR") to maintain transparency and accuracy. Users can manually compound by re-staking rewards if they choose.
Ready to Participate?
Stake $FAV to receive veFAV, vote on campaigns, and start earning from protocol revenue and incentives.