VaporDEX
  • Introduction
    • Welcome to VaporDEX
  • VaporDex
    • Swap & Aggregator
      • How to Swap
      • Who do we Aggregate through?
    • Liquidity Pools
      • Overview of LP Pools
        • What are LP Pools & IL
      • Creating a new pool
      • Launching a token
      • Add to existing Liquidity Pools
      • Concentrated Liquidity Pools
        • Capital Efficiency
        • Active Liquidity
        • Range Limit Orders
        • Mitigating Risk
        • Concentrated Liquidity Vs Standard Pools
      • Telos on VaporDex
    • Bridge
      • How to Bridge?
    • Fiat On and Off Ramping
      • Mt Pelerin
      • Onramper
    • Vape Token
      • Introduction to Vape
        • What is VAPE?
        • Why a new token?
        • The Expanded Role of VPND
        • Role of VAPE in our ecosystem
        • Governance for VaporDEX and VAPE
        • VaporDEX Fee Harvesting
        • Primary Markets for Vape
          • Which market to earn VAPE is right for you?
        • Supply
          • Allocation of initial supply
        • Emission Types
          • Genesis Pool (Direct Emissions)
          • Liquid Staking (Direct Emissions)
          • Enhanced Staking (Indirect Emissions)
          • Stratosphere Rewards
        • VAPE manufacturing & node-powered infrastructure
        • FAQ's
          • Will I need a node in order to manufacture VAPE?
          • Why do we need manufacturing, it seems unnecessary?
          • What if I don’t want to participate in manufacturing, can I sell my materials or transfer them to so
          • Why should I bother manufacturing VAPE?
          • How many nodes can I stake on buildings?
          • Will staking my node on a building burn my TVL?
          • If I stake my node on a building, will it still earn VPND from the VaporNodes reward pool?
          • Will a 10K Node be more powerful than a 10M node in the manufacturing process?
          • Do I lose VAPE materials that I deposit into a building, but fail to be refined, processed, or token
      • Genesis
        • What is the Genesis Pool?
        • How does the Genesis Pool work?
        • How does the Genesis Pool work?
        • How do you determine how much VAPE you will be able to claim from the Genesis Pool?
        • How does the Genesis Pool allow the community to determine the true value of VAPE?
        • Initial Evaluation
        • Market Valuation
        • Role of Various Community-Driven Valuations
        • What to expect from VaporFi Labs during the Genesis event?
    • Liquid Mining
      • VPND Liquid Mining
        • Participation & Eligibility Overview
        • Seasons Concept Overview
        • Overview of Components
          • Deposit VPND
          • Purchase a Mining Pass
            • How Do we Split Mining Pass Fees?
          • Withdraw VPND
            • Early Unlock VPND Cooldowns
          • Claim VAPE
          • Boost Score
        • Mining Mechanics
          • Mining Seasons
          • Seasonal Scoring
          • Boost Impact
        • Token Allocation & Reward Distribution
      • VAPE Liquid Mining
        • Reward Distribution Model
    • Token Factory
      • Anti-Bot and Anti-Whale Features
      • Technical Simplicity
      • Token Launch Considerations
      • Fees
    • Ads
    • Supported Chains
      • Avalanche
      • Telos
      • Apechain
  • Stratosphere
    • What is Stratosphere?
      • How to see your soul bound NFT from Stratosphere
      • How to enroll in Stratosphere
      • Stratosphere FAQ
  • Developers
    • Github repositories
    • Contracts
    • Audits
  • Support
    • Where to get help?
  • Social Media
    • Twitter
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  1. VaporDex
  2. Vape Token
  3. Genesis

How does the Genesis Pool allow the community to determine the true value of VAPE?

PreviousHow do you determine how much VAPE you will be able to claim from the Genesis Pool?NextInitial Evaluation

Last updated 2 years ago

Let’s use a hypothetical scenario where 100M VPND is surrendered into the genesis pool, and you personally account for 1M of that VPND surrendered. VPND at the end of the event is worth $0.002. Here’s how it would all net out.

  • 100M VPND is surrendered into the Genesis Pool, worth a total of 200K USDC (this is the VPND TVL)

  • 420,000 VAPE is emitted to the participants, with the full emission being valued at 200K USDC, or 0.476 USDC per VAPE ([Value in USDC of VPND Surrendered] divided by [420,000 VAPE])

  • Your 1M VPND represents 1.0% of total VPND surrendered, allowing you to claim 1.0% of the 420,000 VAPE

  • You’re able to claim 4,200 VAPE at an initial valuation of 2,000 USDC

  • A 3.0% claim fee (deducted from the 4,200 VAPE) is charged upon claim — and the 126 VAPE is sent to the VaporFi Labs treasury for liquidity management

  • Your 1M VPND ends up netting you 4,074 VAPE, fully transferable to other wallets after claiming

How does the Genesis Pool allow the community to determine the true value of VAPE?

When we explore valuations, there are three different values that we need to examine. The first is determined by the Genesis event, the second can be determined afterwards by the community, and the third is established at the time that the community creates the first liquidity pool

  • Cost to Acquire

  • Initial Valuation

  • Market Valuation

Because the Genesis event requires the permanent surrender of VPND in exchange for a share of a fixed amount of VAPE tokens, it’s possible to use VPND TVL at the end of the event to determine a true marginal cost, or cost to acquire the initial supply of 420K VAPE tokens.

Cost to Acquire

The cost to acquire VAPE can be determined at the end of the event by dividing VPND TVL by 420,000 (number of VAPE tokens). This is the objective and absolute amount of value that the community collectively surrender in VPND in order to acquire their collective stake of 420K VAPE tokens.

Having and establishing an objective and public cost to acquire is a huge part of a healthy community driven valuation — because it informs what the logical floor value for VAPE should be. If the community collectively surrendered 50K USDC worth of VPND for 420K VAPE tokens — it tells us that in total, the community gave up $0.119 worth of VPND for every 1 VAPE token they received.

The community’s cost to acquire the initial supply of VAPE sets a natural minimal valuation that everyone can agree on.

At the end of the Genesis event, once cost to acquire has been fully established, the community now has the ability to develop their own personal and collective initial valuation.

The graphic above shows several hypothetical scenarios and how the price of VPND, combined with the amount of VPND surrendered during the event — can be used to calculate the cost to acquire the initial 420K supply of VAPE tokens.