inSPIRIT is the governance token of SpiritSwap that is based on a vote locking model. The main benefits for inSPIRIT users include: receiving participation rewards, boosted SPIRIT farming rewards, and voting power. This model is based off veCRV from Curve Finance and DILL from Pickle Finance.
- To get inSPIRIT, users must lock SPIRIT tokens for a user-defined timeframe. inSPIRIT would entitle the user to more preferential terms for all interactions within the protocol.
- Users can lock their $SPIRIT for any timeframe between 1 month to 4 years.
- Locking $SPIRIT for a longer timeframe yields a larger amount of inSPIRIT. For example, locking 10 $SPIRIT for 1 year yields 2.5 inSPIRIT. Whereas, locking 10 $SPIRIT for 4 years yields 10 inSPIRIT.
- The amount of inSPIRIT slowly decreases in the user's wallet until it reaches 0. This signifies that the lock period has ended and the user can withdraw their $SPIRIT.
- inSPIRIT is a non-transferable token.
- Protocol income will be allocated towards an incentive pool to be distributes to all active participants on the protocol. For example, users which engage with the platform for token exchange services, participate as liquidity providers, or participate in governance will be entitled to receive rewards for their efforts.
- Users holding inSPIRIT get boosted SPIRIT farming rewards.
- Farmers that hold inSPIRIT can receive a max boost of up to 2.5x in farming rewards. For example, a farmer, with no inSPIRIT, could farm FTM-SPIRIT for 100% APR. Whereas a farmer with sufficient inSPIRIT to achieve max boost could farm FTM-SPIRIT for 250% APR.
- The farm boost is determined by the following equations:
Examples: There are 1,000 inSPIRIT total and 10,000 FTM/SPIRIT LP total in the farm.
- User A has 0 inSPIRIT and 1,000 FTM/SPIRIT LP in the farm --> BF = 0.4 --> 0.4/0.4 = 1x boost
- User B has 10 inSPIRIT and 1,000 FTM/SPIRIT LP in the farm --> BF = 0.46 --> 0.46/0.4 = 1.15x boost
- User C has 100 inSPIRIT and 1,000 FTM/SPIRIT LP in the farm --> BF = 1 --> 1/0.4 = 2.5x boost
- User D has 400 inSPIRIT and 1,000 FTM/SPIRIT LP in the farm --> BF = 1 --> 1/0.4 = 2.5x boost
- 1 inSPIRIT = 1 Vote
- inSPIRIT holders can vote once a week on farm emission allocations.
- inSPIRIT holders can vote on protocol improvement proposals through snapshot governance.