Governors! The wait is over. Governance Vault now LIVE on Mainnet!
Introducing the Governance Vault
The Governance Vault is a key component to the broader Governor DAO token/revenue model. Token holders deposit their GDAO to the Governance Vault to receive xGDAO, a governance token that tracks to GDAO and increases in GDAO value through open market GDAO buybacks.
Every time a buyback takes place from on-chain revenue, a portion of that goes to buying back GDAO from the open market and delivering to xGDAO holders. This revenue share takes the form of an ever-increasing GDAO value held by xGDAO. Users can return their xGDAO back to the vault to receive their initial GDAO plus all revenue share that has taken place to date.
Head to the Governance Vault webpage and follow the prompts to approve + deposit your GDAO. Note that you will need to send a token approval transaction on your first deposit.
Very Important: There is a 3% fee for depositors who are not authenticated through Proof-of-Existence. Make sure to authenticate here to avoid this fee. Note that there will be a delay after enrolling as a VIP through the portal and a wait up to 24-hours following to receive your POE token on Mainnet..
Additionally, there is a decaying withdrawal fee on early withdrawals. This fee starts at 10% and decreases 1% each day. Users must withdraw at least 10 days following their last deposit to avoid these fees.
Non-POE deposit fee and early withdrawal fees are shared 100% by depositors in the Governance Vault.
How Does it Work?
On-chain revenue from NFT sales (plus resale commission), incubated token launches, and Proof-of-Existence signups (once we start charging) flows into a Buyback Agent contract. This contract can be called by anyone and represents Governor DAO’s autonomous monetary policy. The Buyback Agent has a global cooldown between activations and can be called by anyone, permissionlessly, on the Governance Vault page. The Buyback Agent is deployed with the following parameters:
- Max Buyback: 0.75 ETH
- Cooldown between buybacks: 3 days
- 50% of Buyback to Governance Vault (GDAO)
- 40% Liquidity Add to Treasury (GDAO-ETH LP)
- 7.5% to Treasury (ETH)
- 2.5% to contract caller (ETH)
The APR displayed estimates GDAO returns to depositors from the values of the Buyback Agent. Note that this is APR (non-compounding rewards) because GDAO autocompounds for everyone in the vault – it is incorrect to display APY (compounding). This estimation also does not account for earnings from early withdrawals and non-POE depositors, so anticipate actual rewards to trend higher than estimation.
For more information on interacting with the Governance Vault, please visit the Governance Vault User Guide.
Buyback Ramp Up
Earnings to vault occupants takes place whenever Buybacks happen. These buybacks do not begin until the Buyback Agent is seeded with ETH. Per a recent governance vote, the Buyback Agent will be seeded as subsidization from the treasury while revenue from other NFT sales ramps up. The Agent will first be seeded on Wednesday, November 24th. Depositors should enter at their convenience and look for lower gas costs before making their deposit.
Barring delays, the Agent will be seeded with enough ETH to persist through the launch of Wheelies next month.
1. Can I deposit directly from Gate.io?
No, you must deposit using a Web3 compatible wallet.
2. Can I just transfer my GDAO into the Governance Vault instead of using the deposit function?
No, if you do this you will lose your GDAO and you will not be compensated!
3. Can I deposit from Ledger?
Hardware wallets utilizing Web3 functionality (ie Ledger Live + Metamask) can interact with the Governance Vault through the webpage.
4. I signed up for Proof-of-Existence but it’s still flagging my wallet as not holding POE. What Gives?
POE verification is manual and takes up-to 24 hours to reflect on user wallet address.
5. Why did APR go up/down?
APR is dependent on a few different variables. It goes down when more users deposit (up when they withdraw). It goes down when GDAO goes up relative to ETH, and it goes up when GDAO goes down relative to ETH.
6. My xGDAO is worth less than when I deposited. You said it only goes up. Are you scamming me?
The GDAO value of xGDAO only goes up, indefinitely. The dollar price can fluctuate in both directions as the price of GDAO does.
7. How can I see my xGDAO after I have staked my GDAO ?
Once GDAO has been staked in the vault and receive xGDAO, to view xGDAO in your wallet adding the xGDAO contract ID to your wallet will display your holdings 0x306978da6ebee060375f35418744f85c1cb6b353
8. Do I need to have a PoE Token to deposit to the vault ?
No PoE token is required, vault is open to any GDAO holders but there will be a 3% fee of GDAO which was decided by the community.