Based on the calculation method, NFT Passport holders should at least lock 0.5 $NATION (for 4 years) every year to maintain the Passport. (Correct me If I am wrong.)
What if the $NATION’s price is too high to maintain the Passport in the future?
2 Likes
No, the min to be eligible for the passport is to lock 2 $nation for 4 years to get 2 $venation. As there is a gradual unlock this is not ideal in practice. The gradual unlock swaps your $venation to $nation over time (up to 4 years) and your $venation balance would soon be below 2. Therefore, it is advised to lock a bit more than 2 $nation to have some time before your $venation balance dips below 2. Then, before that is about to happen you lock your ‘unlocked’ nation again to recharge your $venation.
Of course, you can accumulate $nation by increments over time but you won’t be able to claim passport with less than 2+
5 Likes
Got it! Thank you! So the point is “gradual lock” and “recharge”.
1 Like
Should be gradual. In proportion of the amount and time you lock for.
Technically it doesn’t swap (unlock) gradually. Voting escrow (ve) locks are deposits to a lock end. What gradually decreases is the voting power (balance of veNATION) you receive for your deposit. Your balance is calculated by:
depositedAmount * timeUntilLockEnd / MAX_LOCK_TIME
Meaning that if you deposit 4 NATION for one year, you will start with a balance of 1 veNATION. And the decrease in your veNATION balance can be expressed as:
(depositedAmount * timeUntilLockEnd / MAX_LOCK_TIME) / timeUntilLockEnd
==
depositedAmount / MAX_LOCK_TIME
All times are rounded to weeks for efficiency purposes. So, in the example above, that would mean that your voting power decreases ~ 0,019 veNATION/week.
As the voting power equation is a linear equation tuned by the amount you deposit and the time you lock, you can achieve the current mechanics in which someone could hold a passport both by:
- Locking an amount of NATION closer to the threshold for a more extended period.
- Locking a larger amount of NATION for a shorter period.
Once you have your lock to keep your balance over the passport threshold, you will only need to extend that lock in the future.
Also, on the current design, the veNATION holders will be able to approve adjustments to the passport threshold. This should help to account for future NATION price changes & gauge the flow of citizens.
I hope this helps the discussion.
2 Likes
yeah, Hope nation to the moon.
To TL;DR what @0xGallego said, your $veNATION doesn’t swap back into $NATION until lock end. It remains in the lock and decreases in balance, because the remaining lock time decreases. However, it doesn’t mean you need more $NATION each time to maintain the lock @tingfei. You can also just click to extend the lock (with no more costs incurred, other than gas costs), and that’s it!
This is done so that individuals with the highest voting power still have a long timelock and therefore are aligned.
3 Likes
i think the unlock only happens at the end of the locking period but not released during the reduction of veNation.
1 Like