Breaking down the Virtuals points system: retail investor friendly, encouraging long-term holding, lowering issuance valuation to create pump space

The asset issuance platform has also entered the Warring States period. Virtuals Protocol, which started as an AI agency issue coin platform, has launched the Virgen points system and the Genesis page. The Genesis Token performed remarkably in May, frequently issuing tokens like $VIRGEN that generate substantial profits. It has also been praised by KOLs for the quality of the Genesis Token, being the best among many platforms. The Virgen points system encourages long-term holding and real participation; this article will break down its mechanisms.

Points determine the share, will Virtuals be fairer than Binance IDO?

Genesis Launch is different from previous issuance platforms for internal and external markets; its mechanism competes with Binance Wallet IDO. Binance IDO involves investing funds and determining shares and refunds based on asset proportions, while Virtuals involves investing funds and points during the presale phase, with shares determined by the proportion of points invested. To compare simply, Binance IDO has to compete with capital and studios, whereas Genesis relies on points to determine shares.

How to earn Virtuals points?

The Virtuals Protocol points system encourages real participation and long-term holding, with earning points having a threshold that must be accumulated through the following methods:

Post interaction.

Stake $VIRTUAL or $VADER.

Trading Volume: Buy and Sell Virtual Tokens.

Extra incentives are provided for holding the tokens issued by Genesis for more than 24 hours to receive diamond hand rewards. The mechanism also penalizes the behavior of quickly selling coins; selling Genesis tokens will trigger a 7 to 10-day cooling-off period, during which the rate of points acquisition will be reduced. The goal is to suppress "Jeeter" ( short-term arbitrage behavior ) and maintain ecological health.

The points distribution is real-time and is allocated every 24 hours. For example, on 5/19:

5% points to Vader stakers

45% for trading volume.

30% to diamond hands.

20% to $veVirtual holders.

Genesis Launch suppresses valuation to create upward space

The token shares launched by Virtuals Genesis are distributed according to the ratio of Virgen Points, not solely based on the amount of funds.

Generally speaking, the economic model of Genesis Token:

37.5% for IDO.

12.5% liquidity.

Remaining 50% depends on how the team arranges it.

In addition, a single address can hold a maximum of 0.5% of the IDO chips. All tokens issued by Genesis have a fixed FDV hard cap of 112,000 $VIRTUAL, approximately 215k at launch. This reduces the pressure of breaking the issue after listing and enhances appreciation potential. If the 24-hour pre-sale period does not reach the graduation threshold of 42,425 $VIRTUAL, it will be considered a failure. Full refunds will be given to users' committed $VIRTUAL and consumed points. It is important to note that points have an expiration period of (14～30 days), and will be automatically consumed upon participation. This is beneficial for new users to join.

Some people believe that Virtual relying on mechanisms to prevent people from selling tokens is not a good thing, but the author thinks this is actually dynamic game theory. If you think the return from shorting the asset can be greater than holding it, then go short, and vice versa. Additionally, as the new GEN Token gains traction, the old tokens can also benefit from the trading volume, increasing the liquidity of the assets.

This article breaks down the Virtuals points system: retail-friendly, encourages long-term holding, and lowers issuance valuation to create room for price increases. It first appeared on Chain News ABMedia.