Explain me like I'm five: VexPolycub (Rewards and Price Impact)

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@khaleelkazi recently made this post about VexPolycub but it is very incomplete. The extra amount of voting power is well explained whereas the juicy part, the extra rewards, was mentioned but there was no explanation about how it will work.

I have very high hopes for Polycub and have been following every step of the project as close as possible. During today's AMA, I took the chance to go over some of my main questions about the inner workings of VexPolycub and Khal answered them all.

Reward Mechanism

VexPolycub vault will work exactly as the Xpolycub vault does in terms of rewards but instead of staking Polycub, you will have to stake Xpolycub. There will be a perpetually growing ratio between VPCUB/XPCUB on the VexPolycub vault.

Meaning that on the first day you will be able to trade 1 XPCUB for 1 VEXPCUB but as time goes on you will have to trade more XPcubs for a single VEXPCUB.

With the big exception of having your funds locked for 2 years. After the lock period you will be able to withdraw your VexPoly or just leave it there accumulating more Xpoly and grating you a larger voting power. Two years in crypto is a long time and Polycub will probably be at $20 by then so I don't blame you if you decide to unload some of your VEXPCUB.

Benefits

The % of rewards allocated to the VEXPCUB vault wasn't decided yet and will most likely be voted on by the community once the update is almost ready to go live. It will be just like holding XPolycub but with some extra Yield on top to reward you for the 2-year commitment.

Voting power from holding XPCUB on the VEXPCUB vault will be 3x higher than simply holding XPOLYCUB. Now, this makes a lot of sense, users who show that they are committed to holding PCUB for at least two years are the ultimate diamond paws and the ones who will vote for long terms prosperity with their added vote weight.

Price impact

VexPolycub vault is a true masterstroke. Giving the handles of the projects to the ones that are committed to the long run while making lots of Xpolycub vanish from the market for AT LEAST the next two years.
Let's also not forget that while in the vault, those Xpolycubs will keep accruing more value as the XPC/PC ratio will keep rising higher and higher over the years.
Less supply = higher prices.

Quick example:

You put in 10 Xpolycub with an XPC/PC ratio of 23 on the VEXPolycub vault.
After 2 Years you might have 12 Xpolycub (Not sure how much since the ROI is yet to be decided) at a WAY higher XPC/PC ratio (Maybe it will be 1 XPC = 40 Polycub by then)

Started with 230 Polycub
After two years: 12*40 = 480 Polycub

Polycub is a genius project, with one of the best tokenomics I have ever seen. I have no doubt in my mind that it will reach at least $1 before the end of the year if the team is able to deliver on its promises.

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Posted Using LeoFinance Beta



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