Question 1

What is VELVET?

Accepted Answer

VELVET is the primary token of the Velvet ecosystem. Its core participation mechanism is not simple holding, but locking VELVET to obtain veVELVET; veVELVET measures locking participation and connects governance, fee discounts, enhanced referral revenue sharing, and reward arrangements. The platform's trading or portfolio functions are product services and should not be conflated with token rights.

Question 2

What happens after locking VELVET?

Accepted Answer

Users can choose to lock VELVET for 1 to 200 weeks and receive veVELVET. The longer the lock period, the more veVELVET is received at the start; however, its balance decays linearly during the lock period and becomes zero at expiry. In other words, veVELVET reflects the remaining lock time and locked amount rather than being a second token permanently fixed at a 1:1 ratio; to maintain this participation level continuously, users need to relock or extend the lock according to the available rules.

Question 3

What are the practical uses of veVELVET?

Accepted Answer

veVELVET is used to participate in important Velvet DAO decisions, with the documentation citing new integrations and fee allocation as examples; it is also associated with tiered trading-fee discounts, increased referral fee sharing, and additional reward arrangements from ecosystem participants. These functions are based on veVELVET that remains active after locking, and the specific discounts, reward eligibility, and allocation outcomes depend on the current rules and user activity; they are not fixed returns obtainable merely by holding VELVET.

Question 4

How do veVELVET-related fee arrangements work?

Accepted Answer

The protocol-fee model described in Velvet's documentation divides fees into two parts: 50% is used to purchase VELVET on the market and distribute it to veVELVET holders, while the other 50% goes to the DAO treasury. Therefore, the prerequisite for this flow-back is that the platform actually generates distributable fees, and an individual's amount is also affected by rules such as their veVELVET holdings and activity; “50%” is the allocation ratio for the fee pool, not a fixed annualized return or yield percentage for each holder.

Question 5

What can the Velvet platform do?

Accepted Answer

Velvet provides an on-chain trading terminal, AI tools that assist research and trading through natural language, and on-chain portfolio-management functions. Users or managers can create personal or shared vaults and allow whitelisted addresses or the public to participate according to their settings. This means the platform's products can be used for trading and portfolio management, but using these products does not automatically mean obtaining veVELVET governance or fee-related arrangements.

Question 6

What are the characteristics of VELVET token allocation and unlocking?

Accepted Answer

VELVET's allocation covers early supporters, the DAO treasury, ecosystem and community, team and advisors, liquidity, and rewards, among other uses. The documentation sets certain portions to undergo a cliff period followed by linear unlocking: during the cliff period, that portion is not released on a linear schedule, and it is released gradually at the established pace only after the cliff ends. Therefore, allocation percentages do not equal circulating supply at the same point in time; evaluating potential circulating supply also requires considering the specific vesting and unlocking schedules for each category.

Question 7

Have emissions voting and bribing mechanisms been implemented yet?

Accepted Answer

The documentation lists emissions voting and bribing mechanisms as future plans. They should not be presented as rights currently available for use or mechanisms already distributing rewards; whether they launch, who they apply to, and their specific rules are subject to subsequently published official protocol or governance documents.

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