This proposal outlines the next phase of Voltage Finance with the introduction of VOLT 2.0, highlighting the new features and tokenomics upgrades. These changes aim to enhance the ecosystem’s growth and maximize benefits for VOLT holders, veVOLT stakers, and VOLT App users.
New Features
1. Global Spending Solution Integration
The full details of this new big integration is pending approval by regulators. This is why we want to focus on the implication on tokenomics and get a temperature check from our community of token holders and stakeholders ahead of the final roadmap announcement and launch in October.
The introduction of the Global Spending Solution will add tremendous value to the VOLT ecosystem, offering real-world utility for VOLT tokens through seamless integration into global payments. The key features tied to this integration include:
- Enhanced Cashback for VOLT App and veVOLT Holders:
veVOLT holders will receive higher cashback rates when using the spending solution. The more VOLT staked, the higher the cashback percentage tier, rewarding long-term commitment.
Example: veVOLT holders with over 100,000 VOLT staked can receive up to 0.20% cashback.
- Auto-Stake Feature for Cashback:
Cashback rewards earned from using the spending solution can be automatically staked to earn veVOLT, increasing governance power and yield without additional user actions.
2. Exclusive Benefits for veVOLT Holders:
- Discounts at partner merchants for users staking more than 50,000 VOLT.
- Early access to new features and partner opportunities in the Voltage ecosystem.
Tokenomics Upgrades
1. Overview of VOLT Tokenomics
Original Supply & Allocation:
- Total Supply: 10 billion VOLT tokens
- Key Allocations:
• Private Rounds: 20%
• Community Incentives & Rewards: 30.75%
• Team & Advisors: 14%
• Airdrop Fund: 2.5%
• Other Funds: Partnerships, Liquidity Provision, DAO Fund, etc.
Original Tokenomics Mechanisms:
• Staking & Liquidity Pools: Incentives for long-term stakers and liquidity providers.
• Governance Utility: VOLT tokens as a tool for governance and platform decision-making.
• Emission Schedule: A decaying emission model ensuring controlled token releases.
2. Deflationary Mechanisms (VOLT 2.0)
Last year Voltage introduced significant deflationary mechanisms, designed to reduce supply and increase token value:
- VOLT Burn: 7.4 million VOLT tokens are burned each month, reducing the total supply by 14.65% of newly minted tokens.
- Transaction Fee Burn: A portion of transaction fees in Voltage pools is used to burn VOLT tokens. In the past four months alone, 38 million VOLT tokens were burned via transaction fees.
3. Proposed Tokenomics Enhancements & Exponential Growth with VOLT 2.0
With the launch of VOLT 2.0, we expect an exponential value increase and user engagement.
The VOLT App 2.0 will be the central hub, driving this growth and creating a flywheel effect:
More users → More engagement → Higher burns → Lower supply → Increased token value → Attracting even more users.
As more deflationary mechanisms are integrated into the VOLT App, including enhanced transaction fee burns and possibly new token burn features, the impact on the token’s circulating supply will grow exponentially.
Building upon the existing mechanisms, VIP-12 introduces new features to amplify the deflationary impact and increase incentives for users:
-
Subscription Fee Buyback and Burn: A subscription fee will be introduced for premium services in the Voltage ecosystem, with 3% of the subscription fee being used to buy back VOLT tokens to be burned.
Example: If 10,000 users pay a $10 monthly subscription, 3% ($3,000) would go toward buying back and burning VOLT tokens. -
VOLT Buyback from Each Transaction Fee: Introduce a 0.5% VOLT buyback from each transaction fee, where the purchased VOLT tokens are burned. This will create additional deflationary effects with every transaction.
4. Forecast for Total Supply Reduction
With exponential growth expected from VOLT 2.0, fee burns could grow to 50 million VOLT per month, leading to a potential reduction of over 2 billion tokens within 3 years, representing a 20.5% decrease in the total supply.
Voltage community members and long-time supporters, your feedback is essential as we implement these exciting updates in VOLT 2.0.
We want to hear your thoughts on these new features and tokenomics upgrades. What resonates with you? What can be improved? Your input will guide us in refining these proposals to best serve the community and drive long-term growth.
Please comment below and share your feedback, helping to shape the future of Voltage Finance.