oTokenomics

oTokenomics are a core part of Orvex’s design, aimed at tackling problems like token devaluation and misaligned incentives for liquidity providers (LPs). The goal is to better align user behaviour with protocol health and long-term growth.

Options

The emissions token (oORVX) gives LPs controlled choices instead of direct liquid emissions.

1. Exercise into liquid ORVX

   • Mechanism: Exercise oORVX into liquid ORVX by paying stablecoins at the protocol strike price.
   • Benefit: Convert emissions into liquid ORVX exposure while contributing to the Strategic Reserve.
   • Example: At the default 30% strike, an LP can exercise 100 oORVX into 100 ORVX worth $100 by paying $30 in stablecoins. Governance can adjust the strike within a 20% to 50% range.

2. Convert to a Permanent account

   • Mechanism:
     Burn oORVX into a permanent veNFT.
   • Benefit:
     Gain non-redeemable governance power with immediate voting rights and 1.0x voting weight.
   • Example:
     An LP converts 100 oORVX into a Permanent account with 100 units of veORVX voting power and no unlock path.

These options let LPs choose between:

• Acquiring liquid ORVX at the protocol strike price
• Increasing long-term governance exposure through a Permanent account

rather than simply selling emissions on the market.

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Revenue distribution from oORVX redemptions

Revenue generated when users exercise oORVX is routed according to fixed protocol priorities.

• 80% goes to the Strategic Reserve
• 20% goes to operations

This supports two core goals:

• Reserve formation without spending principal — Strategic Reserve principal is kept intact and deployed only into principal-preserving yield strategies.
• Sustainable operations — Exercise revenue funds ongoing protocol operations without relying on direct liquid emissions.

By emitting oORVX instead of liquid ORVX, Orvex reduces immediate sell pressure while giving users a clear choice between liquid exposure and permanent governance alignment.