> ## Documentation Index
> Fetch the complete documentation index at: https://docs.initia.xyz/llms.txt
> Use this file to discover all available pages before exploring further.

# VIP Introduction

In an ecosystem with a growing number of rollups, aligning the incentives of all
participants is crucial. Although there have been attempts to achieve this, most
encounter a few common core problems:

* Misalignment of incentives for dApps that generate high levels of on-chain
  activity and value
* Economic underutilization of the native token
* Inefficient distribution of protocol-level grants and incentives to foster
  long-term value and alignment

Initia aims to address these issues for Interwoven Rollups through a novel
incentive alignment mechanism known as the Vested Interest Program (VIP). The
VIP achieves this by programmatically rewarding valuable economic activities:

* Rollups receive reward allocations for creating innovative apps and new use
  cases for the INIT token
* Users earn INIT tokens from performing beneficial actions or meeting criteria
  set by the L2s.

Finally, the VIP allocates a portion of overall rewards directly to the rollups.
This ensures that rollup teams, rollup users, and INIT holders are long-term
aligned with the success of the ecosystem.