Skip to Content
TokenomicsRewards SystemveDXLYN Rebase RewardsUnderstanding Rebase Calculation

Understanding Rebase Calculation

Rebase rewards are calculated using a sophisticated formula that balances multiple protocol objectives:

Rebase=weeklyEmission×[1−(veDXLYN.totalSupplyDXLYN.totalSupply)]2×0.5\text{Rebase} = \text{weeklyEmission} \times \left[ 1 - \left( \frac{\text{veDXLYN.totalSupply}}{\text{DXLYN.totalSupply}} \right) \right]^2 \times 0.5

Formula Breakdown:

  1. weeklyEmission: The total DXLYN being emitted that week
  • Determined by the emission schedule (varies by phase)
  • Typically 2% of initial supply during expansion phase
  1. (veDXLYN.totalSupply ÷ DXLYN.totalSupply): Lock ratio
  • Measures what percentage of all DXLYN is currently locked
  • Higher ratio = more tokens locked = less rebase rewards available
  • Lower ratio = fewer tokens locked = more rebase rewards available
  1. [1 - ratio]²: Inverse quadratic scaling
  • The squared component creates exponential incentives when lock rates are low
  • Encourages new users to lock when participation is low
  • Automatically reduces rewards when lock rates are high (less need for incentive)
  1. × 0.5: Balance factor
  • Ensures 50% of this calculation goes to rebase
  • The other portion is available for emission rewards
  • Maintains equilibrium between governance participation and liquidity provision
Rebase Timing & DistributionPractical Rebase Example