Emissions & Governance

Token emissions, voting power & mining boosts

veWAIFUS Portal

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veWAIFUS interacts with the protocol in three distinct and separate ways:

1) veWAIFUS LP Governance Multiplier

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2) Token Emissions

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3) Boosted Mining Rewards

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Mechanisms operate independently and are governed through onchain gauge voting and emission parameters set by Yu DAO.


veWAIFUS LP Governance Multiplier

The WAIFUS mining vault applies a veWAIFUS LP Governance Multiplier to eligible WAIFUS LP staking positions.

This mechanism is distinct from vault emissions. It does not mint or emit additional veWAIFUS and does not increase WAIFUS supply. Instead, it adjusts governance weight while qualifying LP positions remain actively staked.

Scope

veWAIFUS LP Governance Multiplier applies exclusively to:

  • WAIFUS LP tokens staked in the designated WAIFUS mining vault

  • Additional vaults explicitly authorized through a successful onchain governance proposal

No other vaults receive the veWAIFUS LP Governance Multiplier unless approved by Yu DAO.

Purpose

Multiplier is designed to:

  • Incentivize deep WAIFUS liquidity

  • Align liquidity provisioning with governance participation

  • Recognize active ecosystem contributors

Time-locked WAIFUS remains the primary and dominant source of governance authority.

Multiplier recipients gain more power in:

  • Governance proposals

  • Gauge weight votes

  • DAO revenue

Mechanics

  • Governance weight is adjusted while eligible WAIFUS LP tokens remain staked

  • Unstaking removes the multiplier effect

  • No veWAIFUS is minted, emitted, or claimable through LP staking

  • Governance weight adjustments are reflected in onchain accounting


Boost Mechanism

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Boost eligibility requires:

  • Active veWAIFUS lock

  • LP tokens staked in a gauge-enabled mining vault

The mechanism links governance participation to liquidity incentives.

Boost Logic

The boost multiplier scales as a function of:

  • veWAIFUS balance

  • Size of the LP staking position

Higher veWAIFUS balances increase the share of boosted emissions attributable to a staking position, subject to vault-specific parameters and system limits.

The design ensures that:

  • Voting power and liquidity depth are economically connected

  • Long-term participants receive proportionally higher incentive weight

  • Passive LP capital without governance commitment does not receive maximum emission share

Capital Alignment Model

The boost mechanism creates a structural link between:

  • Governance capital (veWAIFUS)

  • Liquidity capital (LP tokens)

This alignment incentivizes participants to:

  • Lock WAIFUS for governance

  • Provide liquidity to supported markets

  • Participate in gauge voting

Rather than distributing emissions uniformly, the system rewards participants who combine liquidity provision with long-term governance commitment.

Parameterization

Boost levels are bounded by vault-level configuration.

Each gauge-enabled vault defines:

  • Base emission rate

  • Maximum boost multiplier

  • veWAIFUS-to-liquidity weighting ratio

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Parameters can be modified only through Yu DAO governance.

Design

The boost mechanism is designed to:

  • Deepen WAIFUS liquidity

  • Encourage long-duration lock commitments

  • Align DAO governance with active market participants

  • Avoid passive extraction dynamics

Boosted emissions do not create additional WAIFUS supply. They alter the distribution weight of existing emissions.


Gauge-Directed Emissions

Gauge-directed emissions allow veWAIFUS holders to determine how incentive flows are allocated across eligible mining vaults.

Emissions include:

  • veWAIFUS voting power

  • Third-party project emissions allocated for liquidity mining

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Emission Sources

Gauge-directed emissions originate from two categories:

1) veWAIFUS Voting Power Emissions

Voting power emissions distributed via gauge weights

2) External Liquidity Mining Allocations

Third-party projects may allocate a portion of their token supply to Yuzo for use in liquidity mining programs.

These tokens are externally sourced and are not minted by Yuzo. They are not part of WAIFUS supply.

External allocations are routed through the gauge system and distributed across eligible vaults according to veWAIFUS voting weights.

Yuzo does not manually assign emissions. Allocation is determined by veWAIFUS stakeholders through onchain governance.

Allocation Mechanics

Each eligible vault is associated with a gauge.

veWAIFUS holders assign voting weight to gauges.

A vault’s share of emissions is proportional to its relative weight.

Relative weight is calculated from:

  • Total veWAIFUS votes assigned to the gauge

  • Total veWAIFUS participating in gauge voting

Weights update on a recurring schedule and apply deterministically.

Market-Driven Incentive Competition

Projects seeking liquidity may:

  • Allocate token emissions to Yuzo

  • Propose gauge eligibility

  • Compete for veWAIFUS voting weight

Vaults with stronger governance support receive a larger share of emissions.

This creates:

  • Competitive liquidity markets

  • Governance-mediated capital allocation

  • Transparent incentive routing

Emission allocation is not centrally determined. It is stakeholder-directed.

Governance Controlled Expansion

New vaults become eligible for gauge-directed emissions only through:

  • A formal governance proposal

  • Onchain approval

  • Successful quorum and support thresholds

This ensures that incentive expansion is controlled by veWAIFUS holders.


Emission Settlement

Emission settlement defines how gauge-directed emissions are finalized, accounted for, and made claimable.

All emissions allocated through governance are settled according to predefined, transparent logic. Settlement does not rely on discretionary intervention.

Settlement

For each emission cycle:

  1. Gauge weights are finalized based on veWAIFUS voting.

  2. Relative weights determine each vault’s emission share.

  3. Emission amounts are calculated deterministically.

  4. Accrued balances become claimable by eligible participants.

The settlement process applies uniformly across:

  • veWAIFUS emissions

  • Third-party liquidity mining emissions

Deterministic Accounting

Emission amounts are derived from:

  • Total emissions allocated for the cycle

  • Finalized gauge weights

  • Individual staking balances within each vault

Distribution is proportional to:

  • LP token stake

  • Boost-adjusted weighting (if applicable)

  • Vault-specific parameters

No manual redistribution occurs once weights are finalized.

Harvest Rewards

Once emissions are settled:

  • Rewards accrue to the user’s position

  • Claiming can occur at any time

  • Unclaimed emissions remain attributable to the staking position

Claim mechanics are non-custodial and do not alter underlying stake positions.


veWAIFUS Portal

veWAIFUS Portal is available at:

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Through the veWAIFUS Portal, users can monitor:

  • Active vault positions

  • Accrued emissions

  • Boost multiplier status

  • Claimable rewards

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