Understanding the OVIX Protocol Tokens
Hello, there. My name is Abdulqudus, and I would like to welcome you to another edition of premium crypto content from my corner. Today, we will discuss the OVIX Protocol’s tokens.
Basically, the OVIX Protocol has two tokens, namely $VIX and $veVix. It should be noted, however, that each coin has a distinct purpose and performs a unique function inside the ecosystem, the main one being the $VIX.
Also referred to as oToken, $VIX is the OVIX Protocol’s native token. It is obtained as a reward for interacting with the OVIX Protocol; that is, users of the OVIX Protocol earn the oToken as a reward for participating in the OVIX Protocol platform. It sounds wonderful, doesn’t it?
The overall quantity of $VIX is set at 200 million tokens, the vast majority of which are held by the OVIX Decentralised Autonomous Organisation. As it stands, the OVIX DAO owns 51 percent of the tokens, with the remaining 49 percent distributed among others.
On the other hand, $veVIX could be referred to as a subset of the $VIX token. That is, it is basically a derivative of the $VIX token. It is the OVIX Protocol’s governance token and can only be obtained by locking vix into a special smart contract. The amount of veVIX a user can earn is dependent on how long they choose to lock their $VIX. However, it should be noted that the maximum period of time the $VIX token could be locked is a period of four years.
If one VIX is frozen for the said four years, the user will receive a veVIX token in return. It is no rocket science. A user’s veVIX will decay as it approaches the expiration of their $VIX lock-up period. It will eventually reach zero, allowing them to retrieve their locked $VIX.
Finally, it’s worth noting that, while $VIX tokens are transferable, the veVIX token cryptocurrency cannot be traded under any circumstance in order to preserve the exclusivity.
And this is where we’ll come to a halt. I’ll see you guys some other time!
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