Welcome to the Initia ecosystem! The Initia airdrop was a nice start, and you might be already aware of new staking features, but the Vested Interest Program (VIP) is where things get really interesting for active users! VIP isn't about just holding tokens – it’s all about aligning everyone – the app builders and the users (like you!) – towards long-term success. Find out how this program gives back based on your activity and helps keep you involved for the long run.
Key Takeaways
- Ongoing Rewards: VIP is Initia's main system for giving out ongoing ecosystem rewards, different from one-time airdrops.
- Use Apps, Get Rewarded: The primary way to earn these rewards is by actively using the applications participating in the VIP program.
- Earn Locked INIT: You earn rewards as a special locked type of INIT (called esINIT) that needs to be unlocked over time.
- Stakers Have a Say: Users who stake INIT can vote to help influence how some VIP rewards are distributed among the different apps.
- Goal is Growth: The VIP program aims to get everyone working together for the long-term growth and success of the Initia ecosystem.
What is the Initia VIP Program? Solving the Incentive Puzzle
Most crypto projects face a tough challenge: how to incentivize real and lasting participation? Typical approaches often fall short. Some under-reward, failing to gain traction. Others over-reward initially, attracting temporary users who cash out quickly, leading to unsustainable economics ("pump and dump").
Initia's fix? The Vested Interest Program (VIP). Basically, it’s Initia’s smart way to keep the whole network of apps (those Interwoven Rollups) healthy and growing together. It's not just about free tokens – VIP is set up to automatically reward real, helpful activity within the ecosystem.
So, both the cool app teams building on Initia and users like you get ongoing INIT rewards for doing useful things. App teams get boosts for building great stuff and finding new ways to use INIT, while you get rewarded for actions the apps themselves want to encourage. Think of it as the economic glue that makes sure everyone's contributing and benefiting together for the long haul.
How Does VIP Program Work?
Imagine a continuous flow of rewards designed to energize the entire Initia ecosystem. That's the core idea behind VIP. Here’s the simplified flow:
- Distribution Pool: A large portion of the total INIT supply (25%!) is dedicated to funding the VIP program over many years.
- Allocation to Apps: Every stage, the VIP system programmatically distributes a portion of these rewards (in the form of esINIT) to participating application rollups (appchains) built on Initia.
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Factors Influencing Allocation: Which apps get the biggest slice? It depends on metrics reflecting their health and community support, including:
- Balance Pool: How much INIT value has been bridged to that specific rollup.
- Weight Pool: How much voting power INIT stakers (using direct stake or Enshrined Liquidity) have directed towards that rollup via Gauge Voting.
- Rewards to Users: Each application rollup then distributes its share of esINIT to its users based on their scoring rate.
Earning esINIT: Your Activity Matters!
This is where VIP really clicks for you as a user. You don't just get rewards for passively holding tokens, you earn them by actively jumping into the specific apps participating in the VIP program on Initia! (Not every app is automatically part of VIP). You can see exactly which apps are currently qualified and competing for rewards on the Initia App portal under the VIP section (app.initia.xyz/vip).
The rewards you get are called esINIT. What's that? It stands for escrowed INIT – think of it as a temporarily locked version of the regular INIT token that you receive specifically from the VIP program. (You'll need to unlock it later, which we cover in the next section!)
Find our more about the Initia Tokenomics in our Article: Initia Tokenomics: Why INIT and esINIT Matter.
Importantly, the rules for earning this esINIT are set by each individual app team.
Let's look at an example from the Initia App portal: Take Yominet, the game on Initia. If you check the VIP section for Yominet (like in the example image provided!), you'll find their specific "Scoring criteria". In that example, one listed action is "Burn VIP Paper." The description explains that players gather special "VIPP tickets" in the game and can burn them to claim VIP points, which contribute to their overall VIP score for Yominet.
This shows how different apps will have unique, specific ways for you to earn your score based on in-app actions. It could be game achievements like in Yominet, or maybe providing liquidity in a DeFi app, hitting trading volume goals, minting specific NFTs, or other defined on-chain activities relevant to that particular app.
This targeted approach means apps encourage the actions they need to grow, and you get rewarded for doing things that genuinely help the apps you like. Remember to check the specific rules for each app (they must be transparent!), often found right there on the Initia App VIP page or via the app's own channels.
Vesting esINIT: Unlocking Your Hard-Earned Rewards
Okay, so you've participated in apps and earned some esINIT tokens. What now? As mentioned, esINIT isn't immediately spendable INIT token, it's escrowed and needs to vest. This vesting process is Initia's way of encouraging continued commitment.
Based on official diagrams and explanations, you generally have two paths to convert your esINIT into liquid INIT:
- Maintain Your VIP Score: Keep engaging with the application where you earned the esINIT! By consistently meeting the activity thresholds set by that app over a defined vesting period, your esINIT will gradually unlock and become regular INIT. If your activity drops below the threshold, vesting might pause or slow down.
- "Zap" into Enshrined Liquidity: Don't want to maintain activity in one specific app? Initia offers an alternative: you can choose to convert ("zap") your esINIT directly into a locked Enshrined Liquidity position (a staked INIT-paired LP token). This requires committing your rewards as locked capital supporting the network's security and liquidity. While locked, the position vests your esINIT into INIT over a set period, and you also potentially earn the standard EL rewards (staking rewards, swap fees and boosted reward rate) during that time.
This choice between vesting via ongoing activity or via capital commitment provides flexibility while ensuring rewards primarily benefit long-term participants.
Gauge Voting: Steer the Rewards Flow
Want to support your favorite apps on Initia? If you're staking INIT (either directly or via Enshrined Liquidity LP tokens), you have Gauge Voting power.
Accessible through the VIP section of the Initia App (app.initia.xyz/vip/gauge), the Gauge Vote system lets you allocate your voting power towards the application rollups you believe deserve a larger share of the upcoming esINIT rewards pool (the "Weight Pool" portion).
This creates a direct link between L1 stakers and the success of L2 applications, fostering a dynamic where apps compete for community support and stakers actively participate in directing ecosystem incentives.
Ready to Participate? Here’s How and Why!
So, how can you get involved with the Initia VIP program? It mainly comes down to actively using the participating apps (Interwoven Rollups) you find listed on the Initia App VIP portal (app.initia.xyz/vip). Just remember to check the specific scoring rules for the apps you use, as that's how your activity translates into rewards. If you're an INIT staker (directly or via approved LPs), you also have the opportunity to participate in Gauge Voting to help guide where some rewards flow, giving you another way to engage.
Remember, this isn't set in stone, apps might update their scoring rules, and community votes can shift things around with Gauge Voting. But that's part of the fun! It's all designed to be a positive cycle, so explore all the opportunities, understand how you can contribute, and start participating today!
The information provided by DAIC, including but not limited to research, analysis, data, or other content, is offered solely for informational purposes and does not constitute investment advice, financial advice, trading advice, or any other type of advice. DAIC does not recommend the purchase, sale, or holding of any cryptocurrency or other investment.
