Factor Docs

Factor Scale


Factor Scale Rewards
Factor will allocate up to 25,000 FCTR per epoch (weekly), an amount that will increase per milestones. The FCTR tokens for Scale rewards are sourced from the Ecosystem Incentives portion during FCTR initial distribution.
Factor Scale enables veFCTR holders to vote on the distribution of weekly gauge rewards to different vaults created on Factor. To incentivize greater user engagement and deeper liquidity, FactorDAO has allocated 25,000 FCTR per epoch (weekly) that is distributed to strategy Depositors as gauge rewards. veFCTR holders participate in a weighted voting mechanism that takes place weekly to determine the distribution of gauge rewards.
Factor Scale therefore democratizes the allocation of protocol rewards via allowing veFCTR holders to direct protocol emissions through community voting. Rewards distributed by Scale are vested as esFCTR, which can be converted to FCTR at a 1:1 ratio over a 90-day vesting period.

Voting Process

To be eligible to vote on Scale rewards distribution, users must first stake FCTR to receive veFCTR which represents a single vote (i.e. 1 veFCTR: 1 vote). veFCTR holders are then able to vote for multiple strategies by allocating a percentage of their total veFCTR holdings towards various vaults. Note that an emissions multiplier is applied to each veFCTR voter based on their staking duration and relative holdings.
Voting occurs per epoch (weekly) whereby veFCTR holders will have a 72 hour window to vote on their preferred vaults. This encourages greater participation by allowing ample time for votes to be cast. Following the voting window, an on-chain snapshot of the votes is taken week. Scale rewards are then proportionally distributed based on a vault's calculated Scale Weight.
Every step, from voting to reward distribution, is transparent and aligns with the community’s sentiment.

How to use Factor Scale?

  1. 1.
    Stake FCTR for veFCTR: Begin by staking your FCTR tokens to obtain veFCTR, granting you voting rights in the Factor Scale system.
  2. 2.
    Voting on the Dashboard: Participate in voting via the Scale dashboard to influence the allocation of Scale rewards.
  3. 3.
    Track and Adapt: Monitor the impact of your votes on reward distribution, and the impact of Scale rewards on strategy APYs.