Vested Interest Program

Overview

In an ecosystem where potentially thousands of rollups may exist on Initia’s L1, an economic framework that aligns the participants of the hybrid system is required. Initia aligns ecosystem participants through programmatically parametrizing the distribution of INIT and empowers dApps to directly capture economic value generated on their Minitia. The core problems that this system aims to solve include the conventional pitfalls of current L1s:

• misalignment of incentives for dApps that create high levels of on-chain activity and value

• economic under-utilzation of the native token

• inefficient distribution of protocol-level grants

In order to align the interests of all participants within the ecosystem, the Initia Platform employs a new distribution strategy called the Initia Vested Interest Program (VIP). Through VIP,

• L2 economic activity directly accrues value to all participants within the Initia ecosystem

• Applications and developers are incentivized to integrate INIT and be long-termed aligned with the success of Initia

• L2s can harness VIP to amplify activity and maintain engagement of their application

Coming Soon

Further details on Initia VIP will be released part way through Public Testnet. Stay tuned.