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Tokenomics

VIRTUS Protocol is built around two tokens: VRT (the base governance and liquidity incentive token) and veVRT (the vote-escrow position created by locking VRT). Neither token was sold. There are no venture capital allocations, no private rounds, and no pre-sale.


VRT

PropertyDetail
NameVIRTUS
TickerVRT
StandardERC-20
NetworkBase (Chain ID: 8453)
Contract0x1CEFF1D2e0F0f0E27417C5600758EEc1606575CA
Maximum SupplyUnlimited
Supply ModelTwo-phase: genesis mint + weekly emission
TransferabilityFreely transferable

VRT is the protocol's native token. It is used to provide liquidity, participate in governance, and may participate in protocol distributions. VRT holders can lock their tokens to receive veVRT, which grants voting power and access to protocol fee distributions.


veVRT

PropertyDetail
NameVote-Escrowed VRT
TickerveVRT
StandardERC-721 (NFT)
NetworkBase (Chain ID: 8453)
Contract0x6Be687DF2ab94fBD7Eeb4dAc32118110967FF0ef
Created ByLocking VRT for a chosen duration
Lock Duration1 week – 4 years
TransferabilityTechnically transferable as ERC-721; no marketplace exists

veVRT is not a separate token — it is a lock position. Each lock is represented as a unique ERC-721 NFT with its own locked amount, remaining duration, and decaying voting power. While veVRT is technically transferable between wallets (as any ERC-721), no exchange listing or marketplace exists for veVRT. VIRTUS Protocol does not operate, support, or promote any secondary market for veVRT positions. Any wallet-to-wallet transfer carries full counterparty risk for the sender, as no atomic payment mechanism exists. A position transferred after the holder has voted for pools forfeits the fee distributions and voting incentives for that epoch to the recipient — making transfer economically irrational in most circumstances. veVRT cannot be transferred if it has voted in the current epoch or is attached to a managed position.

Voting Power

Voting power is calculated as:

Voting Power = Locked VRT × (Remaining Lock Duration / Maximum Lock Duration)
  • Maximum lock duration: 4 years = maximum voting power
  • Voting power decays linearly every second as the lock approaches expiry
  • Re-locking or extending the duration restores voting power to its full level
  • A 1,000 VRT lock for 4 years has the same initial voting power as a 4,000 VRT lock for 1 year

Lock Mechanics

ActionDescription
LockDeposit VRT, choose lock duration (1 week – 4 years), receive veVRT NFT
ExtendIncrease the remaining lock duration of an existing position
MergeCombine two veVRT positions into one
SplitDivide a single veVRT position into two separate positions
UnlockWithdraw VRT after lock expiry (no early exit)

There is no early exit mechanism. VRT locked in a veVRT position cannot be withdrawn before the lock expiry date.


Supply Model

VRT uses a two-phase minting model.

Phase 1 — Genesis Mint

200,000,000 VRT minted at protocol deployment by the Deployment Wallet. This is a one-time event. The Deployment Wallet executed the genesis mint only and holds no long-term custody or spending role.

Phase 2 — Weekly Emission

Unlimited additional VRT is minted weekly in accordance with the Emission Schedule. Emission is initiated automatically by the smart contract upon completion of the Points Program. Emission parameters are hardcoded in the Minter contract and cannot be changed after deployment.


Initial Distribution

The 200,000,000 VRT genesis mint was distributed across four allocations:

AllocationVRTShareDescription
Lock & Vote100,000,00050%Team allocation, locked for maximum duration (4 years) as veVRT positions
Initial Liquidity50,000,00025%Supplied to VIRTUS liquidity pools to establish initial trading depth
Points Program30,000,00015%Reserved for distribution to early participants based on LP and Multichain Swap activity
Grants20,000,00010%External and internal contributors expanding protocol functionality

Notes on Distribution

Lock & Vote (100M VRT): The full team allocation is locked as veVRT at maximum duration. The team receives distributions through the same mechanism as any other participant — voting on gauges and receiving fee distributions and voting incentives from voted pools. No unlocked team tokens exist.

Grants (20M VRT): Distributed exclusively through the VeLock Portal mechanism. All grant recipients receive veVRT with a direct lock — no unlocked VRT is sent to any individual. All transactions are verifiable on BaseScan. No grants have been disbursed to individual contributors or advisors. No advisory agreements or insider payment arrangements exist.

No sale, no airdrop, no VC allocation: VRT was not sold at any stage. No ICO, IDO, IEO, SAFT, or private placement was conducted. There is no preferential pricing for any party.


Emission Schedule

Weekly emission begins automatically after the Points Program concludes (Week 25). Emission follows four distinct phases governed by hardcoded coefficients in the Minter contract.

PhaseWeeksWeekly EmissionCoefficient
Points Program1 – 240 VRT
Initiation25 – 40Starting at 10,000,000 VRT, increasing weekly×1.03 per week
Elevation41 – 50Stabilized×1.0 per week
Perfection51 – ∞Gradually decreasing×0.99 per week

Emission Distribution

Each week, newly minted VRT is distributed as follows:

RecipientShareMechanism
Gauge stakers (LPs)100% of base emissionDistributed to staked LPs proportional to votes their gauge received
Team / TreasuryUp to 5% (additional mint)Minted on top of gauge allocation via setTeamRate — does not reduce gauge share
veVRT rebasesVariable (additional mint)Minted separately to compensate veVRT holders for dilution (see Rebases below)

Emission Coefficients Are Immutable

Emission coefficients (1.03 → 1.0 → 0.99) are hardcoded at deployment and cannot be modified by any party, including the protocol team or Emergency Council. The smart contract executes these parameters autonomously.


Rebases

All locked veVRT holders may receive rebases — additional VRT minted to counteract dilution from new weekly emissions. Rebases are conditional on a protocol-defined ratio.

How Rebases Work

Each epoch, the protocol compares the ratio of total VRT supply to locked VRT against a hardcoded threshold in the Minter contract:

  • If the ratio is below the threshold (sufficient VRT is locked relative to total supply) → rebases are minted and distributed to all locked veVRT holders, proportional to their lock share
  • If the ratio is above the threshold → no rebase is paid that epoch

When new VRT is emitted to gauges, the total VRT supply increases. Without rebases, all locked veVRT holders would be diluted — their % of total supply would shrink. Rebases counteract this by minting proportional additional VRT into locked positions.

Rebases Are Anti-Dilution, Not Profit

Rebases do not generate above-inflation returns. If total supply increases by 10% and a locked holder receives 10% more tokens, their proportional claim on future fees is unchanged. The rebase corrects for inflation — it does not generate new economic value.

ParticipantRebase?Fee Distributions?Voting Incentives?
veVRT voterYes (if ratio condition met)May receiveMay receive (if deposited)
veVRT locker (non-voter)Yes (if ratio condition met)NoNo
LP (unstaked)NoMay receiveNo
LP (staked in gauge)NoNoMay receive VRT emissions

Fee Distribution

The protocol charges no platform fee. All trading fees generated by liquidity pools flow entirely to participants — the protocol retains 0%.

LP StatusPool has active gauge voting?Trading Fees
Not stakedNo100% to LP holders
Not stakedYes90% to LP holders; 10% to veVRT voters
Staked in gaugeYes100% to veVRT voters

Eligible veVRT voters may receive fee distributions from every pool they voted for during the epoch — 10% from pools where LP is unstaked, up to 100% from pools where LP is staked — plus any voting incentives deposited by third parties for those gauges. Fee distributions are claimable after each epoch closes.


External Bribes (Voting Incentives)

Any third party can deposit tokens into a gauge's bribe contract to incentivize veVRT voters to allocate voting power to that gauge. Bribes are entirely optional and provided by external parties — not by VIRTUS Protocol.

Projects that want deeper liquidity in a specific pool pay bribes to attract voter attention. Voters who allocate weight to a gauge with voting incentives deposited may receive those incentive tokens in addition to the pool's fee distributions.

Voting incentive tokens are distributed pro-rata to all voters who supported the gauge, proportional to their voting weight. Voting incentives are claimable after the epoch in which the vote occurred.


VRT Fed — Democratic Monetary Policy

At approximately epoch 100–110, when weekly emission reaches ~9,000,000 VRT per week, the VRT Fed activates. This mechanism transitions monetary policy from hardcoded coefficients to democratic governance.

Once active, veVRT holders vote each period on one of three options:

VoteEffect
IncreaseWeekly emission rate increases by a predefined step
MaintainWeekly emission rate unchanged
DecreaseWeekly emission rate decreases by a predefined step

The outcome with the most voting power wins. The VRT Fed marks the protocol's transition to fully community-governed monetary policy — the founding team's role in emission decisions ends entirely.


Protocol Revenue

Protocol revenue is generated from:

  • The team's veVRT positions voting on gauges (fee distributions + voting incentives, same as any participant)
  • Up to 5% of weekly VRT emissions allocated to the team wallet via the Minter

Protocol revenue is used for:

  • Protocol maintenance and infrastructure costs
  • Ongoing development and improvements
  • Strategic collaborations and advertising
  • VRT buyback operations (subject to internal controls and performance considerations)

No distributions are made to VRT holders passively. Distributions flow only to active governance participants (voters) through the fee distribution and voting incentive mechanism described above.


Token Policy

StatementDetail
Prior tokensVIRTUS Protocol has not launched any tokens prior to VRT
veVRT as separate tokenveVRT is a derivative of VRT created through the locking mechanism — it is not a separate independent token
Future tokensNo plans to launch additional tokens. Any future related token will be publicly disclosed with full documentation prior to launch
Market makingNo third-party market maker has been engaged. All VRT liquidity is provided organically. Any future arrangement will be publicly disclosed

Summary

ParameterValue
Genesis supply200,000,000 VRT
Weekly emission startWeek 25 (after Points Program)
Peak weekly emission~10,000,000 VRT (Week 25) rising to ~15M+ during Initiation
Long-term weekly emissionGradually declining at 0.99× per week (Perfection phase)
VRT Fed activation~Epoch 100–110 (~9M VRT/week)
Team allocation100M VRT, 100% locked as veVRT at maximum duration
Token salesNone
VC allocationNone
Protocol fee0%
Max lock duration4 years
Epoch duration1 week (Thursday 00:00 UTC – Wednesday 23:59 UTC)

Contracts

ContractAddress
VRT Token (ERC-20)0x1CEFF1D2e0F0f0E27417C5600758EEc1606575CA
veVRT — VotingEscrow (ERC-721)0x6Be687DF2ab94fBD7Eeb4dAc32118110967FF0ef
Minter0xDc1dE416DdaD4c9e8328F30aE88E2392d5b551f7

All contracts are immutable, verified, and publicly readable on BaseScan.


VRT is a governance and liquidity incentive token. It does not represent equity, debt, or profit-participation rights in any legal entity. It does not confer any claim against VIRTUS Protocol or any affiliated party. Holding VRT does not guarantee any return. Protocol participation involves significant risk including total loss of capital. See Legal Disclaimer and Legal Disclosures for the full risk disclosure.


Last updated: May 2026 — Version 1.1

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