Tokenomics
Overview of the VLD Token
Validators DAO issues the VLD (Validators DAO Token) as the core incentive mechanism rewarding network contributions. Users mine VLD tokens by staking elSOL in Validators DAO, and can further lock these tokens for a defined period to obtain veVLD (Vote Escrowed VLD).
Holding veVLD grants users voting rights in selecting validator staking allocations and liquidity pool destinations.
Token Allocation and Airdrop
The VLD token distribution is structured as follows:
15%: Airdrop
An airdrop will be conducted for early contributors to Validators DAO and the broader Solana ecosystem, including:
- Open-source contributors to SLV (formerly solv)
- Validators using Validators Solutions
- $elSOL holders
- $EPCT token holders (excluding core team, DAO wallets, and locked tokens)
- Buidlers Collective NFT holders
- Epics Beta tester ticket NFT holders
- Buidlers Guild Card Pack NFT holders
- Various snapshot participants (announced periodically via Discord)
90% of this airdrop is allocated to eligible participants, with the remaining 10% reserved for initial liquidity provision in LP pools.
85%: 10-Year Linear Vesting
The remaining 85% of VLD tokens will unlock linearly over 10 years, rewarding long-term contributors:
- 80% allocated for mining by elSOL stakers
- 20% allocated to liquidity pools, decided through veVLD voting
veVLD: Voting and Locking Incentives
veVLD (Vote Escrowed VLD) tokens are obtained by locking VLD tokens for specified durations, playing a vital role in Validators DAO's governance structure.
Increased Voting Power with Longer Lock Periods
The longer the lock duration, the more veVLD is acquired, granting stronger voting power. After the lock period expires, veVLD decays, but continued governance participation is possible through re-locking.
Voting Targets
- elSOL staking delegation to validators, emphasizing reliability and decentralization
- Liquidity pool allocation for elSOL and VLD tokens (e.g., Uniswap, Jupiter, Orca)
Design Philosophy
The Vote Escrowed model prioritizes long-term project commitment over short-term speculation, thus supporting network health, stability, and sustainability.
Network Value Created by VLD/veVLD
Stake Allocation for Small and Mid-sized Validators
veVLD voting allows new and mid-sized validators to gain sufficient stakes, promoting greater decentralization of the network.
Supporting Liquidity Pool Growth
DeFi pools receiving veVLD voting support attract increased capital and expand Total Value Locked (TVL), promoting healthy ecosystem growth.
Optimized Incentives
For stakers, VLD mining combined with veVLD voting aligns personal returns with overall network contribution, fostering sustainable participation.
TGE Schedule
The Token Generation Event (TGE) for the VLD token is scheduled for Q4 2025.
Further details (including mining schedules, distribution designs, and snapshot criteria) will be published in the official white paper upon finalization.