Curve announces bonus rewards program, locking CRV yields highest mining efficiency boost of 2.5 times.

In order to increase the incentive for CRV token holders to participate in governance, Curve announced the launch of the "Mining Reward Bonus Program." Starting from 9:00 PM Taiwan time on August 28, CRV holders can increase their mining rewards up to 2.5 times by participating in governance through token locking.

Enhancing Participation in Governance

According to previous reports, Curve's governance token CRV unexpectedly emerged on August 14 under the promotion of an anonymous community member. Simultaneously, Curve's liquidity mining was officially launched, where all liquidity providers who deposit and stake assets on the Curve platform can receive CRV as rewards for providing liquidity.

On the other hand, the release of the CRV token also signifies the formation of Curve's decentralized autonomous organization (DAO). In order to provide more incentives for CRV token holders to participate in community governance, the team announced the launch of the "Mining Reward Bonus Program" starting at 9 pm Taiwan time on August 28. CRV holders can increase their mining rewards up to 2.5 times by participating in governance through token locking.

According to official statements, the more assets a user locks and the longer the lock-up period, the more "voting power" they will have. For example, locking 1,000 CRV for one year will yield 250 veCRV in voting power, while locking for four years will result in 1,000 veCRV. However, in community governance voting, it's not just about the number of votes; each participant's "voting weight (i.e., influence on governance)" is also a factor. Generally, the closer the unlock time, the lower the voting weight.

Mining Reward Multiplication Calculation

Regarding the mining reward bonus, the specific formula can be found in theofficial article. For those who prefer not to read the article, calculations can be directly done on the Curve platform through thecalculator.

The image above shows that locking 10 CRV for four years will yield 10 veCRV. Once set, scroll down to select the fund pool you are mining in.

Enter the quantity of LP tokens here to calculate the boost in mining rewards (2.2046). However, it's important to note that the boost multiplier is related to the "relative voting weight" (the more people lock CRV, the lower your relative voting weight, resulting in a lower boost multiplier). Therefore, the calculated value does not represent the actual results. The high multiplier is calculated due to the low number of people locking CRV, as the "Mining Reward Bonus Program" has not yet been launched.

Yearn Proposes Corresponding Proposal

Following Curve's introduction of the mining reward bonus program, Yearn founder Andre Cronje released agovernance proposal yesterday. The proposal suggests locking yVault's previously pre-mined and unlocked CRV for four years upon daily release, thereby increasing the mining rewards for ycrv in the yVault up to 2.5 times. This strategy not only reduces the circulating supply of CRV but also empowers YFI token holders with "governance power" over CRV, resulting in a win-win situation.

Currently, the proposal has received majority agreement in offline voting, and the next stage will involve on-chain voting. Once approved, the strategy can be successfully implemented.