In today’s rapidly developing blockchain space, the $PUFFER token is gradually gaining attention as the native governance token of the Puffer protocol and UniFi ecosystem. This article will explore in detail the functionality of $PUFFER, the vePUFFER mechanism, and its important role in the ecosystem.
What is the $PUFFER Token?
The $PUFFER token is not only a core component of the Puffer protocol, but also an important governance tool in the UniFi ecosystem. Through $PUFFER, users can manage key protocol parameters such as fees, limits, and margin requirements. Additionally, $PUFFER allows users to select guardians and re-staking operators, ensuring the security and stability of the ecosystem.
The main function of $PUFFER: Manage key protocol parameters: Users can adjust various protocol parameters through $PUFFER to optimize system performance.
Select a guardian: To ensure the security and stability of the network, users can select a suitable guardian.
Support AVS: Improve the overall efficiency of the protocol with selected supported AVS (Automated Verification Service).
Future features: It is planned to distribute ETH to different operators and AVS to enhance the flexibility and scalability of the system.
$PUFFER in the UniFi Ecosystem
The $PUFFER token plays an equally important role in the UniFi ecosystem. It serves to manage the fee structure, oversee the security parameters of the AVS, and guide the integration of new pre-qualification and proposer commitment services. Through $PUFFER, users are able to directly participate in the governance of the ecosystem, ensuring its long-term sustainability.
UniFi's governance function: Set fee parameters: Users can set fee parameters for aggregated transactions through $PUFFER to promote the healthy development of the ecosystem.
Manage treasury funds: ensure the rational allocation and use of funds to support the long-term development of the ecosystem.
Guide upgrade decisions: Through the joint efforts of the community, determine function priorities and promote technological progress.
vePUFFER: Innovative governance mechanism
vePUFFER is a novel governance mechanism implemented as an ERC-721 token designed to foster value-aligned and loyal participants. Users can participate in the governance of the ecosystem by staking $PUFFER tokens to mint vePUFFER NFTs.
The main features of vePUFFER: Flexible staking: users do not need to specify a lock-in period and can cancel the pledge at any time.
Dynamic voting rights: Voting rights increase over time, encouraging long-term participation.
Reset mechanism: Unstaking will reset accumulated voting rights, providing users with flexibility.
Based on NFT: implemented as ERC-721 tokens, offering unique possibilities for governance participation.
How to use vePUFFER
Users can participate in governance by staking $PUFFER to mint vePUFFER NFT. Each week, users' voting rights will gradually accumulate, and after a warm-up period, they will be able to start voting. This mechanism enables users to actively participate in the future development of the Puffer ecosystem, enabling truly decentralized and community-led governance.
Initial vePUFFER parameters: The following are the initial vePUFFER parameters, which may be changed in the future via governance proposals:
| Category | Name | Description | Value | |------------------|----------------|---- ----------------------------------|----------| | Vote Weight Curve | Maximum Multiplier | Maximum increase upon initial deposit if user retains staked tokens indefinitely. | 2x | | Voting Power Curve | Maximum Duration | The time required to reach the maximum multiplier following a linearly increasing curve. | 2 years | | Voting power curve | Warm-up period | The time after lock-in that users can vote. | 3 days | | Exit queue | Cooldown | The time between entering the exit queue and being able to withdraw the underlying tokens. | 1 month | | Exit queue | Minimum lock | Minimum time that must be held before starting the exit process. | 1 month | | Exit queue | Exit fee % | Tax paid in base tokens on exit. | 0% | | Escrow | Minimum Deposit | The minimum number of PUFFER tokens that users must deposit. | 70 pufferfish |
Total supply and distribution of $PUFFER
The total supply of $PUFFER is 1,000,000,000, with an initial supply of 102,300,000 (10.23%). Its distribution is as follows:
Ecosystem and Community: 40% is used to build a vibrant and engaging ecosystem to ensure continued growth.
Airdrop Season 1: 7.5% allocated to the Crunchy Carrot Quest Season 1 airdrop.
Airdrop Season 2: 5.5% allocated to Crunchy Carrot Quest Season 2 participants.
Investors: 26% Drive Puffer’s growth through investor support.
Early contributors and advisors: 20% Ensure long-term commitment from the core team.
Concierge Guild: 1% is used to support Ethereum core development and enhance the security and scalability of the ecosystem.
in conclusion
Not only is the $PUFFER token a core governance tool for the Puffer protocol and UniFi ecosystem, its flexibility and innovation make it stand out in the blockchain space. Through the vePUFFER mechanism, users can actively participate in governance and promote the sustainable development of the ecosystem. As $PUFFER continues to evolve, we look forward to it bringing more opportunities and value to users and the community in the future.