Factor Scale is a governance mechanism for 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 rewards in the next epoch.
More info can be found on our 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 holders through significant allocations.
How does voting work in the Factor Scale system?
Voting is community-driven and weighted, meaning holders can spread their votes across multiple strategies. The voting process is detailed .
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 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 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 holdings leading to increased individual rewards.
Reward variance based on weekly voting outcomes.
A multiplier effect on rewards for holders (e.g., a 2.5x multiplier depending on vault participation).
Why do weekly vault rewards vary?
What is esFCTR and its vesting mechanism?
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?
How can users engage with Factor Scale?
Weekly vault rewards vary based on the outcomes of the as well as , reflecting the community's consensus on which vaults should receive more or less of the total rewards.
Scale rewards are distributed as , 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.
Non-veFCTR holders still receive rewards, but at a lower rate compared to holders.
To participate in Factor Scale rewards, you can find a step-by-step guide .
