Introduction

Velocity and Value:

How VTX achieves velocity:

1. Invite issuances — When users interact with the protocol, such as by wrapping their tokens, they generate pending rewards in the form of discount unlocks. These tokens can be sent as soft offers to new participants, granting them the ability to purchase VTX at a discount from the current auction price.

2. P2P network — Crypto tends to assume that network effects = size. In doing so, every project attracts low value, opportunistic actors who offer no distinctive resources, play limited roles, and actively deteriorate collective sentiment. VTX can only be purchased through a bid or shared through from another owner in the network. Higher barriers to entry are enforced at launch in order to attract and reward cooperative holders.

How VTX achieves value:

1. 1:1 Backing — Each VTX token is backed by 1 USDC in the treasury, ensuring a stable baseline value. This backing is maintained by requiring at least one USDC per VTX issued at auction alongside a well capitalized yield-rate that prevents issuing more than the treasury’s premium.

2. Dynamic Emissions — Distributions are rewarded to those participating in increasing network velocity.

VTX requires stacking together many existing designs, rather than inventing new ones. At the same time it avoids the obvious pathways of fiat, LSTs, and risk adjusted monetary policy — all of which are centralized and none of which provide avenues for sustainable network growth.

In other words, VTX takes the most robust existing designs we have — namely sealed bid auctions, wrapped rebates, and discount credits– to drive social scalability for its status as money.

How it works:

VTX is an asset backed token that cannot be utilized by external smart contracts. VTX is meant to be exchanged and traded within existing network holders only. It can be utilized as a standard SPL token through a wrapper; however, a sizable fee is taken when VTX is wrapped with a rebate upon unwrap. VTX is emitted through daily auctions in which the protocol trades USDC for VTX.

Holders can either stake VTX or share to new users outside of the network. Shares are referred to as Invite Issurances. When holders interact with the protocol, such as by wrapping their tokens, they generate pending rewards in the form of discount unlocks. These invite issuances can be sent as soft offers to new participants, granting them the ability to purchase VTX at a discount from the current auction price. If claimed before the expiry period, original issuers pending tokens become available for claim.

Invite issuances are measured velocity. Crypto tends to assume that network effects = size. In doing so, every project attracts low value, opportunistic actors who offer no distinctive resources, play limited roles, and actively deteriorate collective sentiment. VTX can only be purchased through a bid or shared through from another owner in the network. Higher barriers to entry are enforced at launch in order to attract and reward cooperative holders.

The protocol’s USDC backing ensures that VTX will not fall below its intrinsic value over the long term. This provides holders with a clear, defined risk level, as 1 USDC is guaranteed as the long-term price floor. Additionally, holding USDC to support the tokens creates opportunities for generating yield.

The initial profit distribution will be: 80% to stakers and 20% to the DAO (these allocations will be changed if necessary, as decided by the DAO). All rewards are paid in VTX. This system maintains a stable intrinsic value and reduces the incentive role of appreciation in favor of accumulation, like with real money: you try to get more dollars, you don’t hope your dollars become worth more (though we do aim for both).