Introducing the $VRTX Vertical Program
Vertex has experienced significant growth in both trading volume and protocol revenue since its launch on Arbitrum in April 2023. As organic liquidity across multiple chains expands, Vertex is transitioning to a more sustainable incentive model for VRTX – designed to foster long-term alignment with token holders and ecosystem participants.
The VRTX Vertical Program introduces a new chapter in tokenomics, with Stage 1 focusing on reducing VRTX emissions and refining incentives to encourage organic liquidity growth across several categories.
Driven by community feedback, Stage 1 represents the first step in a multi-phase rollout aimed at delivering impactful updates to the VRTX tokenomics.
VRTX Vertical Program – Stage 1
The Vertical Program will introduce a series of updates to VRTX tokenomics in multiple stages over the coming weeks and months.
The first phase begins on Wednesday, September 11th, 2024, with an initial reduction in VRTX trading reward emissions. A detailed breakdown of the Stage 1 changes is provided below.
1. Reduce the Current VRTX Rewards Emissions Schedule
Starting Wednesday, September 11th, 2024, the VRTX rewards emissions schedule will be reduced by 50%. A comparison of the updated and original emissions schedules can be found in the following Google Sheets:
Initially, the VRTX Rewards program was designed to boost liquidity and activity on the DEX. Given the decline in VRTX's price alongside steady exchange activity over the same period, it's time to redirect incentives more towards fostering ecosystem growth.
Reducing emissions will better align the protocol's long-term strategy, redirecting token holdings to support broader growth initiatives beyond trading rewards.
*NOTE: The Vertex Tokenomics & Token Supply Distribution documentation sections will be updated to reflect the Stage 1 changes once they first go into effect on Wednesday, September 11th 2024.
2. Updating VRTX Maker / Taker Rewards Split of Total Emissions
As of Wednesday, September 11th, 2024, the Maker / Taker split for VRTX rewards will be updated as follows:
- Maker: 75%
- Taker: 25%
This marks a shift from the previous 50 / 50 split between Makers and Takers.
The update increases Maker rewards by 25% while reducing Taker rewards by the same margin.
Although Taker rewards will decrease, maintaining adequate liquidity for trading remains crucial. Increasing Maker rewards ensures sufficient liquidity is available, supporting a smooth trading experience for all participants.
3. VRTX Rewards: Monthly → Weekly Epoch Change
The final update in Stage 1 involves shifting the VRTX Rewards epoch duration from monthly to weekly. The last monthly epoch will begin on Wednesday, September 11th, 2024, and end on Wednesday, October 9th, 2024.
After that, VRTX Rewards epochs will occur weekly, with each week representing ¼ of the previous monthly epochs reflected in the new VRTX emissions sheet below:
This shift to weekly epochs allows for smoother onboarding of trading firms into the Vertex Maker Program and aligns more closely with the ecosystem’s existing incentive structures.
Upcoming Stages of the VRTX Vertical Program
After Stage 1, the VRTX Vertical Program will continue to evolve with several key developments.
Each new stage will be rolled out independently over the coming weeks and months. Here’s a glimpse of what’s to come:
- Increasing Maximum Maker Rebates: Ways to increase maximum maker rebates, such as raising rebates by 50% to 0.75 bps, are currently being explored. This update will prioritize participants most invested in the ecosystem, with the goal being to enhance liquidity for all market participants.
- Expanding Community Chain Incentives: As Vertex Edge expands cross-chain, more community-driven incentive programs will be launched, particularly rewards native to a specific chain supported by Edge. These initiatives will resemble the $SEI and $MNT trading rewards available to Vertex users on both the Sei and Mantle networks, respectively.
- VRTX Staking & Loyalty Upgrade: An upgrade to VRTX Staking is currently in progress, set to launch around October 2024. This update will introduce a new Loyalty Program to further engage the community.
- Enhancing VRTX Utility: Upcoming updates will enhance and broaden VRTX's utility beyond its current scope, further strengthening its role within the Vertex Edge ecosystem.
- [Redacted]: More exciting updates are on the way, anon…
Stay tuned for more details on each stage as the VRTX Vertical Program continues to unfold!
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About Vertex
Vertex was founded by a team of seasoned traders and engineers from both traditional finance and DeFi markets. Recognizing the need for more flexible DeFi trading, Vertex launched on Arbitrum and now is proud to play a role in the innovation of a multi-chain DeFi ecosystem.