Invite System

Invitation System Design

As mentioned in Wrapping, a portion of fees collected during the wrapping piece are placed into a pool which funds the invitation system.

Every VTX token in the invitation pool represents an available invitation for a network outsider to buy into the VTX system at a known price, as opposed to buying through an auction round. More specifically, an invitation provides the opportunity to purchase new VTX tokens at the price of the last auction round.

When an invitee claims a network member's invitation, that member is rewarded an equivalent amount of VTX from the invitation pool. The invitation system is first come, first serve.

Sending Invitations

VTX holders may send invitations to wallet addresses which don't currently hold any VTX, and are therefore currently network outsiders. Invitations are sent via the Invite tab on the VTX dapp.

Each VTX holder is capped at sending invitations for only a portion of the total invitation pool. As more funds are deposited into the invitation pool over time, each user's cap increases.

VTX holders can - and are encouraged to - send invitatations to multiple addresses; however, if one address chooses to claim the holder's entire invitation allotment, then the other invitees will not be able to buy in through the invite system, and must resort to participating in auction rounds.

Redeeming Invitations

Redeeming invitations is done through the Invite tab of the VTX dapp. An invited user may redeem any amount of the invitation's token value, each valued at the most recent auction's price.

Example Scenario

  1. Charlie Wraps 1,000 VTX tokens:

    • Charlie is taxed 20% for wrapping, with 5% (50 VTX) going towards the invitation pool.

  2. Issuing Invites:

    • Based on the current token distribution, Alice now has invitation credits for 10 VTX tokens, and sends an invitation to Bob via the dApp.

  3. Bob Accepts the Invite:

    • Bob accepts Alice’s invite and purchases 10 VTX at the last auction’s price. Note: If Bob wishes to obtain more VTX, he must either receive additional invitations or participate in an auction round.

  4. Redemption and Claiming:

    • Bob's purchase of the 10 VTX completes Alice's invitation, and Alice is rewarded 10 VTX from the invitation pool.

  5. Alice's other invitations are invalidated:

    • If Alice had also sent additional invitations to wallets besides Charlie's, then those invitations are no longer claimable, as all of Alice's portion of the invitation pool has been redeemed. However, once additional funds are added to the invitation pool, Alice will also receive new invitation credits and be able to send invitations once more.

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