Voter Rewards

B3TR tokens will be sent weekly to the Vote2Earn pool. The purpose of these funds and this pool is to incentivize people to engage in the platform by voting on proposals and allocation rounds. B3TR tokens will be rewarded to users who have voted in the previous voting cycle, both in general governance proposals and allocation rounds.

All funds received by the Vote2Earn pool as part of the B3TR emissions will be used as voter rewards.

Galaxy Member NFT: Unlock Greater Rewards with Upgrades

VeBetter DAO utilizes an upgradeable NFT system, the Galaxy Member (GM) NFT, to determine user privilege and reward levels. The higher your GM NFT level, the greater the B3TR token rewards you can earn during governance and xallocation voting participation.

Unlocking GM NFT Levels

There are two ways to upgrade your GM NFT:

1. Using B3TR Tokens:

   • Donate the required B3TR tokens to upgrade your GM NFT level.

   • Each level requires progressively more B3TR to unlock.

2. For Free (Node Holders):

   • If you are a VeChain Node holder, you can upgrade your GM NFT for free up to a specific level based on your node type. Refer to the Node Holder Guide for details.

B3TR Requirements for Upgrades

Level	Name	B3TR Required	Multiplier
2	Moon	10,000 B3TR	1.1x
3	Mercury	25,000 B3TR	1.2x
4	Venus	50,000 B3TR	1.5x
5	Mars	100,000 B3TR	2x
6	Jupiter	250,000 B3TR	2.5x
7	Saturn	500,000 B3TR	3x
8	Uranus	2,500,000 B3TR	5x
9	Neptune	5,000,000 B3TR	10x
10	Galaxy	25,000,000 B3TR	25x

Benefits of Upgrading Your GM NFT

• Maximized Rewards:

  • Higher levels provide greater multipliers for governance rewards.

• Flexibility:

  • Use B3TR for upgrades or enjoy free upgrades as a VeChain Node holder.

• Dynamic Participation:

  • Contribute actively to the ecosystem with enhanced rewards.

By participating in governance and upgrading your GM NFT, you can maximize your rewards and actively contribute to the growth of the VeBetter DAO ecosystem.

Linear Rewards

After a successful DAO proposal (read more here: https://governance.vebetterdao.org/proposals/72709653895201643147493896803002902200801427824992756263136121079630798867207) the rewards earned by participating in VeBetterDAO governance are linear (instead of quadratic) starting from round 23, which means that you earn rewards proportionally to your VOT3 holdings at the time of the snapshot.

Reward Formula

1) First calculate the weighted vote for a single user:

$$WeightedVote_i = t_i \cdot (1 + \frac{NFTMultiplier_i}{100})$$

Where:

• t is the amount of VOT3 tokens held by the user at the snapshot

• NFTMultiplier is the level multiplier percentage for the voter's Galaxy Member NFT level

2) Then, calculate the total weighted votes for the cycle (by summing votes from all users):

$$TotalWeightedVotes = \sum_{j} V_j \cdot (1 + \frac{NFTMultiplier_j}{100})$$

3) Finally, calculate the reward:

$$Reward_i = \frac{WeightedVote_i \cdot TotalAvailableRewards}{TotalWeightedVotes}$$

Example:

Given:

• Total participants: 1,000 voters

• Emissions (E): 1,000,000 B3TR

• Voter's votes (V): 10,000

• Level multiplier (M): 10%

• Total weighted votes from all participants: 5,300,000

Calculation:

$$WeightedVote = 10,000 * (1 + 10/100) = 10,000 * 1.1 = 11,000$$

$$Reward = (11,000 / 5,300,000) * 1,000,000 = 2,075 B3TR$$

This means out of 1,000 participants, this voter's 11,000 weighted votes represent about 0.2075% of all weighted votes, earning them 2,075 B3TR from the emission pool.

Quadratic Rewarding (disabled from round 23)

Quadratic Rewarding (QR) in VeBetterDAO is the approach used for distributing voting rewards. Under QR approach, the rewards a user receives will be determined by the square root of their VOT3 token holdings. This method ensures that while users with more tokens still receive higher rewards, the rate of increase in rewards does not grow linearly with the number of tokens held. Instead, it rises at a decreasing rate, promoting a fairer distribution of rewards and helping to close the wealth gap within our community.

Reward Formulas

QR divides rewards into two categories based on the type of voting: X Allocation and General Governance. Both types incorporate an NFT Multiplier to adjust the influence of a user’s tokens based on their GM NFT level, promoting active and sustained participation.

X Allocation Reward Calculation

X Allocation Reward for user $i$

$$\text{UserRewardWeight}_{i} = \left( \sqrt{t_{i}} + \left(\sqrt{t_{i}} \times \frac{\text{NFTMultiplier}_{i}}{100}\right) \right)$$

$$\text{B3TRReward}_{i} = \frac{\text{TotalReward}_{i}}{\sum_{j} \text{TotalReward}_{j}} \times \text{Emissions Pool}$$

where:

• $​$$t$ is the total VOT3 tokens used by the user in XAllocation Voting.
• $NFTMultiplier$ enhances the voting power based on the user's GM NFT level.

General Governance Reward Calculation

Governance Reward for user $i$

$$\text{GovernanceReward}_{i} = \alpha\left( \sqrt{v_{i}} + \left(\sqrt{v_{i}} \times \frac{\text{NFTMultiplier}_{i}}{100}\right) \right)$$

where:

• $v$ represents the VOT3 tokens delegated to a user for a given voting round
• $NFTMultiplier$ enhances the voting power based on the user's GM NFT level.
• $\alpha$ represents the number of proposals voted on in the voting round

Total Rewards Calculation

Total reward weight for user $i$

$$\text{TotalReward}_{i} = \text{XAllocationReward}_{i} + \text{GovernanceReward}_{i}$$

Total rewarded B3TR to user $i$ for a round is thus calculated as follows:

$$\text{B3TRReward}_{i} = \frac{\text{TotalReward}_{i}}{\sum_{j} \text{TotalReward}_{j}} \times \text{Emissions Pool}$$

Where the sum is taken over all users $j$ participating in the voting