What is vDODO?

vDODO is a transferable token that serves as a user's proof of membership in DODO’s loyalty program.

vDODO Utilities and Benefits

Benefits for vDODO token holders include but are not limited to the following:

• Governance rights: holders can create and vote on proposals. 1 vDODO = 100 votes
• Crowdpooling and IDO allocations
• Trading fee discounts
• Dividends paid out from trading fees (exclusive to vDODO token holders): A proportion of the trading fees accrued on the platform will be distributed to vDODO holders
• vDODO membership rewards (exclusive to vDODO token holders): DODO reward tokens will be distributed to vDODO holders every block (see next section)

Minting and Redeeming vDODO

Minting vDODO and Membership Rewards

You can stake 100 DODO tokens to mint one (1) vDODO token. vDODO tokens are Now transferable. vDODO token holders receive DODO reward tokens. Specifically:

1. 6 DODO reward tokens are released and distributed to vDODO holders every block.
2. vDODO holders receive DODO reward tokens proportional to their shares of vDODO, i.e. the number of DODO tokens they get is 6 * their vDODO balance / number of vDODO in circulation
3. vDODO holders can invite others to mint vDODO tokens using their referral links. The inviter receives extra membership rewards equal to 10% of the number of vDODO tokens minted by the invitee.

Redeeming vDODO and Exit Fee

In order to redeem vDODO back to DODO tokens, you will need to pay an “exit fee” in vDODO tokens, which will be immediately distributed to all remaining vDODO holders who haven't exited.

Here, we will introduce a statistical measure called the DODO Loyalty Index (DLI), defined to be (number of vDODO in circulation * 100) / DODO in circulation. Assuming everything else stays the same, when vDODO gets minted, the number of vDODO in circulation increases, the number DODO tokens in circulation decreases, and the DLI increases.

The exit fee structure is that the higher the DLI, the lower the exit fee rate:

1. When the DLI is above 0.5, the exit fee is at its minimum of 5%.
2. As DLI decreases, the exit fee rate increases.
3. When the DLI is less than 0.1, the exit fee is at its maximum of 15%.

More specifically, the exit fee rate formula is:

• If DLI > 0.5, exit fee rate = 0.05
• If DLI < 0.1, exit fee rate = 0.15
• If 0.1 < DLI < 0.5, exit fee rate = 0.175 - 0.25*x
• Note that DLI cannot exceed 0.5, since no DODO would be available to be staked to mint vDODO tokens