Governance Program
Nusa for holders, holders for Nusa
Nusa Governance Program is a feature where NUSA holder, as investor, can earn the right to receive Nusa protocol revenue.
Each month, protocol profit from various Nusa features will be calculated. Profit will then be distributed into various spot including operational, buy back, and profit sharing. The amount of Governance Program reward will vary each month depending on how much earning the protocol gained.
To be able to participate in this program, you have to earn the Governance Token (veNUSA) by locking NUSA in the Governance feature. the veNUSA that is earned, will represent your share in the Governance Program. veNUSA amount will gradually decrease until the period of your lock finishes. When veNUSA becomes zero, you can get your locked NUSA back.
Let's take a look at Alex's experience:
Alex locked 4 NUSA for 4 years on Nusa Governance program.
According to the veNUSA formula, he will get 4 veNUSA.
1 years later, his veNUSA amount becomes 3 veNUSA. After 4 years has been passed, the veNUSA amount will become 0.
When his veNUSA turns 0, it will trigger unlock option where he could get back his locked NUSA back.
veNUSA formula
Every month protocol revenue will be divided into 4 weeks distribution.
For example, in one month NUSA could spare $10,000 of revenue for Governance Program. This means that the distribution will be $2,500 each week for 4 weeks.
Reward distribution formula
Alex locked 4 NUSA for 4 years on Nusa Governance program. According to the veNUSA formula, he will get 4 veNUSA.
Sabrina locked 4 NUSA for 1 month on Nusa Governance program. According to the veNUSA formula, she will get 0.08 veNUSA.
Let's assumed that they are the only holder participating this week, which means that there are 4.08 veNUSA participating that week (Alex 4 + Sabrina 0.08).
In the first week, $2,500 reward is being distributed. Based on the veNUSA owned, Alex will have 98% (4/4.08) of shares and Sabrina will have 2% (0.08/4.08) shares.
On distribution day, Alex will get $2,449 and Sabrina $51.
1st Week | Alex | Sabrina |
|---|---|---|
NUSA locked | 4 NUSA | 4 NUSA |
Lock duration | 4 years | 1 month |
veNUSA owned | 4 veNUSA | 0.08 veNUSA |
Share portion | 98% | 2% |
Reward received | $2,449 | $51 |
On the second week, Clemira joined the Nusa governance program.
Clemira locked 10 NUSA for 1 month on Nusa Governance program. According to the veNUSA formula, she will get 0.21 veNUSA.
Alex and Sabrina is still participating in the program because they already locked their NUSA and still owns veNUSA.
But in the second week distribution, their veNUSA amount is already decreased. According to the formula, in the second week Alex will have 3.98 veNUSA and Sabrina 0.06 veNUSA (decreasing from 4 and 0.08 veNUSA compared to first week amount).
Based on that we can calculate that total circulating veNUSA is 4.25 (Alex 3.98 + Sabrina 0.06 + Clemira 0.21) veNUSA.
In the first week, $2.500 reward is being distributed. Based on the veNUSA owned, Alex will have 94% (3.98/4.25), Sabrina 1% (0.06/4.25), and Clemira will have 5% (0.21/4.25) share.
By the end of second week distribution, Alex will get $2,340, Sabrina $38 and Clemira $122.
2nd Week | Alex | Sabrina | Clemira |
|---|---|---|---|
Nusa locked | 4 NUSA | 4 NUSA | 10 NUSA |
Lock duration | 4 years ( Subtracts 1 week for remaining lock duration) | 1 month ( Subtracts 1 week for remaining lock duration) | 1 month |
veNUSA owned | 3.98 veNUSA | 0.06 veNUSA | 0.21 veNUSA |
Share portion | 94% | 1% | 5% |
Reward received | $2,350 | $25 | $125 |
Based on this examples we can conclude that:
- The amount of veNUSA represent the portion of reward received
- The amount of veNUSA is influenced by the amount of NUSA locked and lock duration
- The amount of veNUSA decreses as times
With this mechanism, choose your strategy that suit best with your need with the resources and commitment you are willing to give. Don't forget to DYOR!
This simulations are simplified to make easier examples. Real case calculation will have slight differences such as:
- Amount of reward each month will vary based on platform revenue generated
- In this example, we simplified veNUSA decreasing number by day. In real case, veNUSA decreasing number is calculated every second.
Disclaimer: Crypto is high risk investment. Please do your own research and make sure you understand how to use the platform before taking further action.
Last modified 3mo ago