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Emissions

The Orvex emissions model is designed to:

  • Reward liquidity providers and veORVX voters with oORVX-based incentives
  • Bootstrap and then gradually normalise incentives over time
  • Limit long-term dilution through decaying emissions and rebase protection

Exact numbers (weekly amounts, decay rate, allocation splits) will be finalised and published in the Orvex tokenomics before launch. The outline below shows the intended structure, not final on-chain parameters.

Emissions structure

Key components of the planned emissions system:

  • Weekly emissions: A fixed amount of oORVX is emitted each epoch at launch, with emissions decaying over time.

  • Decay schedule: Emissions are scheduled to decrease by a fixed percentage per epoch (for example, 1% per week) to prevent runaway inflation.

  • Treasury / dev allocation: A small portion of weekly emissions is allocated to the treasury / core contributors to fund development, operations and security.

  • veORVX rebases / anti-dilution: A rebase cap starts at a higher protection level and decays over multiple epochs (for example, over a 52-week period) so that early lockers receive stronger anti-dilution while the system bootstraps. Rebases are distributed to Autovote Vault participants only. Solo veORVX holders are not rebase-eligible.

  • Liquidity provider emissions: A growing share of emissions is directed to liquidity providers over time, with the goal that the majority of emissions eventually support productive liquidity and gauges.

All percentages and timeframes here are illustrative only. Final Orvex emissions parameters will be detailed in the Tokenomics section and may be adjusted through governance.

Anti-Dilution Mechanics

The veORVX rebase cap serves as anti-dilution protection for long-term token lockers.

How It Works:

  1. Each epoch, a portion of emissions is distributed as rebases to Autovote Vault participants (not solo veORVX holders)
  2. This rebase compensates for dilution caused by LP emissions
  3. The rebase percentage starts at 30% and decays to 0% over approximately one year
  4. Rebase amounts depend on qualifying vault participation and the applicable anti-dilution parameters

Example:

  • You lock 10,000 ORVX for 2 years at Epoch 1, receiving 10,000 veORVX
  • If weekly rebase emissions = 30,000 oORVX and total qualifying vault supply = 1,000,000
  • Your rebase share = (10,000 / 1,000,000) x 30,000 = 300 oORVX per week
  • Over approximately one year with decay, qualifying vault participation can receive significant additional oORVX to offset dilution

Why This Matters:

  • Rewards early adopters who lock during protocol launch
  • Compensates for initial high LP emissions during bootstrap
  • Protection naturally phases out as protocol matures
  • Ensures long-term lockers aren't diluted by short-term participants

Emissions Token (oORVX)

Emissions are distributed as oORVX, a non-transferable emissions instrument.

How oORVX Works:

  • LPs receive oORVX as rewards from gauges
  • oORVX has two conversion paths: Exercise (pay stablecoins at the protocol strike to receive liquid ORVX) or Burn (convert into a permanent veNFT)
  • Exercise revenue is routed 80% to the Strategic Reserve and 20% to operations
  • This creates a value-capture mechanism for the protocol while reducing sell pressure

For full details on oORVX mechanics, see oORVX Token Documentation.

External Incentives (Bribes)

While partner projects typically provide external incentives (bribes), any user can create external incentives to encourage voting for pairs with active gauges. Orvex can also support this by allocating a portion of protocol revenue or treasury funds to incentivise specific pools.

Incentives methodology

Gauge performance is assessed based on TVL efficiency and fee generation. Using internal analytics, the team can manually direct incentives to better reflect each gauge's real contribution. In some cases, especially with partners, Orvex may use incentive-matching agreements to help kickstart new gauges.

Claiming external incentives

When an epoch flips, all rewards tied to that voting period become claimable.

  1. Go to the Rewards page.
  2. Select the veNFT that was used for voting.
  3. Claim the corresponding rewards for the gauges you supported.

Gauge Caps

Gauge caps are throughput-linked limits that prevent over-allocation of emissions to underproductive venues. If the emissions allocated to a gauge exceed that gauge's economic throughput multiplied by a configurable cap multiplier, the excess emissions are burned rather than distributed.

This mechanism protects against rent-seeking and ensures a pool must generate proportionate economic activity to absorb its full gauge allocation. Cap multipliers are set via governance and can be adjusted per gauge type. The burn of excess emissions is permanent, reducing total supply.

Design Goals

The emissions structure is designed to achieve several objectives:

  1. Bootstrap Liquidity — High initial emissions attract capital
  2. Reward Commitment — Anti-dilution protects long-term lockers
  3. Minimize Inflation — 1% weekly decay reduces long-term dilution
  4. Shift to Sustainability — Emissions transition from rebases to productive LP rewards
  5. Enable Governance — veORVX holders control gauge allocations

Timeline:

  • Months 1-6: Bootstrap phase with strong anti-dilution
  • Months 6-12: Transition phase, emissions shift toward LPs
  • Year 2+: Sustainable phase, minimal new issuance, fee revenue dominates

All percentages and timeframes here are illustrative only. Final Orvex emissions parameters will be detailed in the Tokenomics section and may be adjusted through governance.

An updated emissions chart for Orvex will be added here once the final schedule and parameters are confirmed.