Re-Epoch 16 Inertia VIP Update

Initia Governance VIP
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0. Proposer Info

1-1. Purpose

This proposal updates the VIP (Vested Interest Program) scoring formula for Inertia.

1-2. Background & Objectives for VIP rewards on New Assets

Inertia is also looking to distribute VIP rewards to the nLP Farm, to further drive the expansion of the community-driven Season 2 of Inertia DeFi Ecosystem. As a strategic starting point for this new asset, this proposal seeks to redistribute VIP rewards and Inertia points to incentivize early adoption.

1-3. Overview of nLP Farm

  • nLP: A derivative LP asset primarily used for farming

  • nLP Farm gives users greater flexibility to achieve greater yield across the Inertia ecosystem

1-4. Current Reward Framework for nLP Farm

  • USDC & INIT Liquidity Pool (nLP) Farm : Only INRT Points yield focused pool

1-5. Proposed VIP Reward Framework for nLP Farm

  • nLP Asset Rewards

    • USDC - INIT Liquidity Pool Farm

    • Proposed Calculation Methods:

      • VIP Score / sec = × [(Total LP Supplied_{previous stage} × scaling factor × 4 x n) / 1,209,600]

      • As for the n parameter, we plan to keep n = 2 throughout Inertia Season 2, which covers the period before the INRT token launch. After the token launch, we will update n = 1, and reflect this change in the scoring formula accordingly.

      • Scaling factor and calculations subject to adjustments based on ratio of other VIP Points allocating assets

      • Progressive Scaling Phase:

        For the first five VIP stages after implementation, nLP’s VIP Score calculation references sINIT’s TVL with incremental scaling factors. The scaling factors progressively increase by 20% each VIP stage, achieving a 1:1 ratio with sINIT in the fifth and final phase.

2. Strategic Benefits and Conclusion

This framework ensures transparent, fair VIP Score distribution, strategically rewarding early contributors and accelerating balanced asset growth.

By incentivizing adoption during the initial phase and scaling rewards as TVL matures, Inertia positions itself for sustainable expansion, enhanced liquidity, and long-term value creation for all stakeholders in the DeFi ecosystem

This proposals seek the approval of the Initia community members to redirect portions of the current rewards to incentivize LP, and strengthen the Initia Ecosystem.

This calculation will be updated in Stage 16.

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This proposal has been reviewed and approved by the VIP Committee.