❔FAQ - Factor Scale

What is Factor Scale?

Factor Scale is a governance mechanism for veFCTR holders, allowing them to vote on the allocation of Scale rewards to various strategies on a weekly basis.

To ensure equitable distribution of emissions, Factor Scale implements TVL milestones whereby every subsequent TVL target achieved unlocks more FCTR rewards in the next epoch.

More info can be found on our Factor Scale Docs.

What are the advantages of Factor Scale?

The system offers decentralized governance, stimulating community engagement through governance objectivity and efficiency. It also provides strong incentives for veFCTR holders through significant esFCTR allocations.

How does voting work in the Factor Scale system?

Voting is community-driven and weighted, meaning veFCTR holders can spread their votes across multiple strategies. The voting process is detailed here.

What is the duration of the voting period?

The voting period lasts throughout the weekly epoch, providing ample time for stakeholder participation.

How does voting influence Scale reward allocation?

Voting with veFCTR influences how weekly Scale rewards are allocated among different vaults. The percentage of votes a vault receives directly impacts its share of the rewards.

How do Scale reward mechanics work?

Stakeholders use their veFCTR to vote on the allocation of weekly Scale rewards across different vaults. The rewards a vault receives depend on its share of the total votes. The mechanics involve:

• Higher veFCTR holdings leading to increased individual rewards.

• Reward variance based on weekly voting outcomes.

• A multiplier effect on rewards for veFCTR holders (e.g., a 2.5x multiplier depending on vault participation).

Why do weekly vault rewards vary?

Weekly vault rewards vary based on the outcomes of the voting process as well as emission milestones, reflecting the community's consensus on which vaults should receive more or less of the total rewards.

What is esFCTR and its vesting mechanism?

Scale rewards are distributed as esFCTR, which are non-transferable and non-tradeable. It can be converted to FCTR on a 1:1 ratio over a 90-day vesting period, aimed at reducing sell-pressure and promoting long-term engagement. Vesting can be claimed at any time based on total time vested and is irreversible once initiated.

Is there flexibility in claiming Scale rewards?

Yes, claiming rewards is flexible and can be done at any time, allowing stakeholders to choose when to receive their rewards.

Are there any benefits for non-veFCTR holders?

Non-veFCTR holders still receive rewards, but at a lower rate compared to veFCTR holders.

How can users engage with Factor Scale?

To participate in Factor Scale rewards, you can find a step-by-step guide here.