Emissions
Last updated
Last updated
The distribution of DYST emissions is carried out at a rate of 90% for Liquidity Providers and 10% for veDYST lockers.
Dystopia is governed by veDYST, which are locked DYST, there is no maximum supply but DYST inflation in relation to circulation supply will be drastically reduced over time. As the amount of veDYST decreases linearly with time, the perspective is that veDYST holders receive less rewards from emissions as their stake decreases.
The % of DYST tokens locked in relation to the circulating supply directly affects the pace of emissions and reward distribution, but regardless of the proportion of DYST locked up, the long-term prospect is that emissions will become lower in the future.
The emissions velocity of DYST tokens is dynamic and depends on the proportion of the total supply locked in veDYST. The greater the proportion of DYST tokens locked in veDYST, the less intense the distribution of emissions to veDYST and Liquidity Providers.
Conclusively, as the liquidity providers are the ones that receive the most emissions, with 90% of all rewards distributed to them, it will be the aggregate of their collective decision that will dictate whether the emissions of DYST tokens will be more intense or more steady.
This "dynamic emissions" characteristic creates a situation where the total supply of the DYST token cannot be accurately predicted, as the choice of locking into veDYST or not will directly affect emissions performance.
There is an inverse relationship between the amount of DYST locked as veDYST and the inflation rate of DYST emissions. For example, if 0% of the DYST is locked, emissions will be maximum, but if 100% of DYST is locked, the emissions will stop completely.
Weekly emissions are dependent upon the ratio of veDYST to total DYST circulating supply:
The result is that the more users that lock in, the smaller the rewards distributed to Liquidity Providers.
Below is the outlook of various circulating supply scenarios in May 2026 according to different amounts of locked DYST.
The dynamics of ve(3,3) also acts in accordance with the economic projection of Dystopia, directly affecting the future circulating supply of DYST 4 years from now, so that the higher the % of DYST supply locked, the lower the expansion of supply. Consequently, the circulating supply will be smaller over time.
The higher the % of DYST locked in relation to the supply, the lower the DYST circulation supply will be in the future.
This ve(3,3) feature provides a general incentive for all users to lock as many DYST tokens as possible so that the result is reduced circulating supply, reduced emissions and consequently, fewer DYST tokens available on the market.
Regardless of the DYST future circulation supply and locking ratio, due to the decaying inflation design, annual inflation relative to the total supply will be lower in the long run than now. Below is a prediction of DYST annual inflation 10 years from now in three different scenarios based on % of the supply locked as veDYST.
The prediction above illustrates a 0% locked DYST scenario. In this scenario the higher annual inflation compared to the other scenarios with a higher % of supply locked as veDYST will increase the total supply of DYST.
Structurally veDYST still determines which gauges the DYST rewards will be distributed to. The relatively higher annual inflation will provide a less effort scenario for more users to lock veDYST and the dual incentive of governing over DYST emissions and reducing annual inflation due to the increased locking ratio.
In a ve(3,3) scenario where approximately 90% of the supply is locked as veDYST the annual inflation of DYST will be approximately 5% providing greater stability to the supply expansion but also requiring more effort from users to lock veDYST.
No percentage of DYST supply is distributed to insiders, all DYST supply is distributed to platform users through LP incentives or DYST locking, this is an authentic characteristic of Dystopia in relation to other protocols. Dystopia swap fees are 0.05%. Of all fees generated by the platform, 50% goes to the treasure contract to pay devs and other expenses. From 2024, the excess of fees on the treasury contract will be used for DYST buybacks.
