veZOO

veZOO Reward Distribution Simplified

Introduction:

At ZooDAO, every Battle season introduces a new opportunity to earn $ZOO, our multifunctional governance & utility token. How? Through active participation in our dApp by voting on or staking NFTs. The veZOO model dictates the distribution of these bonus $ZOO rewards.

What is veZOO?

veZOO is a competitive rewards framework. Instead of supporting a single NFT, users can back an entire NFT collection by locking ZOO-ETH LP (Liquidity Provider tokens) for at least one Battle. In essence, they provide liquidity for the ZOO and ETH pair on Camelot. The more ZOO-ETH LP you lock for a collection, the more $ZOO rewards that collection's Voters and Stakers stand to earn after each Battle. $ZOO rewards are distributed each season and are distributed according to the veZOO model. Collections with no ZOO-ETH LP locked behind them can still benefit from the game and won't have any strategic disadvantage; they simply won't earn the bonus $ZOO yield released to voters and stakers each season because they don't have "skin in the game" in terms of ZOO-ETH LP.
Remember:
  • 85% of the $ZOO rewards are designated for Voters.
  • 15% of the $ZOO rewards are reserved for NFT Stakers.

A Practical Example:

To better understand, let's visualize a scenario involving Alice and Bob.

Initial Fictional Setup:

  • Let's imagine 10,000 $ZOO tokens are available for distribution via the veZOO model every Battle season.
  • Two NFT collections are eligible in ZooDAO: "Alice Cats" and "Bob's Dogs".
  • Alice and Bob lock up $100 worth of ZOO-ETH LP to support their respective collections.
  • They each stake an NFT from their collection for the Battle and cast votes with $100 in liquidity.
Given the equal contributions, both "Alice Cats" and "Bob's Dogs" NFT collections account for 50% of the total veZOO ranking each. As a result, regardless of the Battle outcome, both Alice and Bob are entitled to 5,000 $ZOO:
  • 750 $ZOO for staking their respective NFT.
  • 4,250 $ZOO for casting their votes.
A Twist: Now, imagine Bob persuades two friends to vote for his NFT, aiming to bolster its chances in the Battles. The 4,250 $ZOO earmarked for voters of the "Bob's Dogs" collection will now be split between Bob and his two friends. To recap, veZOO rewards will be given to the collections and users with the most "skin in the game" regarding ZOO-ETH LP, and greater contributions and lockups will yield greater rewards for their entire community of Voters and Stakers.

Conclusion:

Through the veZOO model, ZooDAO offers a dynamic way for users to maximize their $ZOO rewards. It encourages individual participation and collective support for entire NFT collections, making the Battle seasons both competitive and rewarding.