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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. It utilizes a pool of 100,000 esFCTR tokens each week to incentivize active participation.
What are the advantages of Factor Scale?
The system offers decentralized governance, stimulating community engagement. The upcoming automated voting feature aims to enhance governance efficiency and objectivity. 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. Currently, voting is manual, but an automated voting feature is scheduled to launch later this quarter.
What is the upcoming automated voting feature?
The automated voting feature will allow veFCTR holders to set their voting preferences based on criteria like specific vaults, TVL, volume, APY, and bribes.
What is the duration of the voting period?
The voting period lasts 72 hours within a 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, reflecting the community's consensus on which vaults should receive more or less.
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 every second based on 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 the lowest rate compared to veFCTR holders.
How can users engage with Factor Scale?
To engage, stakeholders should first stake FCTR for veFCTR to gain voting rights. They can currently participate in manual voting through the dashboard and look forward to the automated voting feature. Monitoring and adapting to the impact of votes on reward distribution and strategy APYs is also recommended.