TL;DR: Inverse is upgrading its INV governance token with minimum 100% APY continuous staking rewards and revenue sharing rewards for xINV stakers.
Today we are releasing an upgrade to our INV governance token called Inverse Plus.
What is Inverse Plus?
Inverse Plus is a new class of governance token called a positive sum rewards token. Unlike governance tokens with no value accrual mechanism, positive sum tokens are designed to deliver real value beyond just voting rights in a DAO. More on this below, but if the governance token you hold today doesn’t have a value accrual mechanism, you are holding a zero-sum token and you are playing a zero-sum game if you hold it.
So we’re turning the page on all that with Inverse Plus, which includes:
1. More Attractive xINV Rewards
A more aggressive staking rewards program for INV starting at 100% APY and hard-capped at 500%. All designed to boost demand for DOLA as you’ll use DOLA to buy INV but ultimately designed to encourage investors to keep their INV staked and capture maximum rewards.
Interestingly, staking rewards don’t occur daily or even three times per day, rather they are added to your account continuously with every new mined Ethereum block, so approximately 6,400 times per day at today’s rates.
2. Revenue Sharing Rewards
A key element of a positive-sum rewards token is a real value accrual mechanism, which in INV’s case is derived from Inverse’s DOLA lending business.
DOLA lending is the income flywheel that brings continuous value to INV — this is simply not seen among governance tokens anywhere.
As Inverse reaches key DOLA circulation milestones, all INV stakers will receive DOLA revenue sharing rewards according to a soon-to-be agreed upon payout framework within the Inverse DAO. Our DAO-wide goal for DOLA this year is 1 billion in DOLA circulation and a revenue sharing reward is to be paid out at this milestone, but to repeat, the revenue sharing framework is under active discussion.
A simple answer to the “how much” question so far is: the longer you stake, the greater your per-token revenue sharing reward will be.
3. Protocol Owned Liquidity
In November 2021 we experimented with Olympus DAO’s Olympus Pro bond program with good results and we are firing these up today as well. Unlike the liquidity rental mentioned above, these bonds allow us to permanently own the underlying liquidity and count those LP tokens as treasury assets. For those seeking an alternative approach for acquiring INV governance tokens, this is an excellent way to acquire them at a substantial discount. For more information visit our Olympus Pro bonds page .
Note that Inverse Plus is not an OHM fork — it uses our existing smart contracts written in Dec 2019 or before. INV is not redeemable for a portion of the Inverse Treasury, there is no “runway”, and there is no “risk free value” per se. Inverse, like many other protocols, is simply emitting new tokens — purposely at a higher rate to attract new capital to Inverse, and building its treasury to rapidly expand its revenue-generating DOLA lending business. The APY is set at a level that is more aggressive than today’s INV staking reward rates but way below other, more aggressive rebasing tokens and other Venezuela-style high-inflation regimes.
4. More DOLA Lending, Lower Interest Rates
DOLA borrowing today is usually less expensive than competing decentralized stablecoins as Inverse is increasingly positioning DOLA as the low-cost borrowing alternative in the market. Our low-cost strategy is aided by our cross-chain DOLA Fed system, which works to ensure rate uniformity across chains and borrowing pools. With Inverse Plus, as our Treasury expands and so does our ability to lend DOLA at lower rates.
For Inverse partners like Scream or Rari, this means greater levels of liquidity for lending and for non-Ethereum L1’s or L2’s, it ultimately means liquidity for AMM’s on those chains as we expand DOLA lending beyond Ethereum.
5. Full Voting Rights in Inverse DAO
INV holders (staked or not) receive full voting rights in all Inverse DAO’s on-chain governance proposals. This part of our organization deserves its own blog post but as an INV token holder you can vote directly on any proposal, or you can delegate your votes to one of of the members of our Delegate Council, who serve as a sort of “senate” within the DAO where each delegate may represent a large number of smaller wallets and vote as a bloc.
How Can I Try Inverse Plus?
You can visit us at inverse.finance today. For a deeper dive into our products, our docs are here and the doors to our Discord are open to interested community members of all skill levels as well as those who just want to have a look around!
Disclaimer: This content is for informational purposes only and should not be construed as legal, tax, investment, financial, or other advice.
