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Vertex Protocol has taken the best practices from the top representatives in its industry and integrated this into its tokenomics.

The launch of the VRTX token is happening very soon, and it's time to understand the project's tokenomics.

Personally, I have traded enough to earn a fair amount of rewards and plan to keep the tokens in my investment portfolio.

I am confident that Vertex will become a serious competitor for GMX and others.

So, let's start.

The Vertex tokenomics is not simple; I'll try to explain it as simply as possible.    

VRTX is the native token which becomes useful upon staking.

xVRTX (Staked VRTX) is a full-fledged LST transferable token that is given to you instead of the staked VRTX, which are locked for 2 weeks.  

By owning this token, you get voting rights in governance and a share of the total token pool, which earns you protocol fees, by the way, they are paid in USDC/ETH/BTC.  

Now about voVRTX  

It's something like a non-transferable user score and is similar to Multiplier Points from GMX.  

There are 3 ways to earn these points:    

Boosting  

This option is for those who believe in the protocol's development and decided to invest in it for the long term. This option is less risky, here you won't lose your tokens. Each xVRTX pledged will earn 0.02277 voVRTX per hour up to a maximum score of 100 voVRTX per xVRTX. In effect, this means it will take 6 months to reach a maximum score. The more voVRTX you have, the more it boosts your income and increases your voice in governance. Maximum boost is 2.5X    

Insurance Staking  

This option is for riskier users. Here you must lock your tokens for at least 3 weeks, and then you can earn income from liquidations. However, up to 50% of your holdings will be eligible for liquidation in the event that the insurance fund is drained. It's a system similar to DAI Vaults from Gains Network.    

Fee-based voVRTX   Here we have 2 options:  

• VRTX to pay trading fees
• Purchasing a basket of cryptocurrency fees with VRTX

  Using VRTX to pay trading fees (at a discount)  

• When a trade is executed, the taker pays the required trading fee in VRTX.
• The VRTX is burned, and the user receives 50 voVRTX.
• The spent VRTX is effectively converted to voVRTX, with an expiry of 3 months.

  Using VRTX to buy crypto baskets  

• The protocol offers baskets of cryptocurrencies for sale in auctions.
• These tokens come from protocol revenue.
• VRTX is the only accepted payment for these baskets.
• Members bid on these baskets.
• At the end of the auction, the winners receive the coins, their VRTX payments are burned, and they also receive voVRTX.
• The spent VRTX is effectively converted to voVRTX for a period of 3 months.

  Regarding the last method, there are more questions, but we will figure it out as we go along.  

For those who still don't understand what is happening, Vertex has taken the very best from GMX, GNS, and Level Finance and came up with its own reward system, which looks attractive for conservative investors, risky speculators and traders.  

The system itself and the upcoming launch look very complex from a technical point of view, and I hope that everything will go smoothly for Vertex.   In the next article, we will analyze how the LBA & Token Launch will proceed.

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