3 - Staking Model and vePACT
3.1 - Staking Overview
To promote long-term alignment and active participation in the network, $PACT holders may choose to lock their tokens in a staking contract to receive vePACT—a synthetic, non-transferable token that represents their commitment to the ecosystem and grants enhanced governance rights. When $PACT is locked, a base amount of vePACT is issued, with the vePACT balance increasing incrementally over a 12-month period to reflect duration-weighted participation.
At launch, the monthly accrual rate will be set at 0%, with a community governance proposal expected to introduce an increase (e.g., 8% per month) post-launch. Unlocking staked $PACT requires a 30-day waiting period following a submitted request.
All staking parameters—including accrual rates, lock-up durations, and related mechanics—are fully subject to governance, allowing the system to evolve with community input while encouraging stable, engaged protocol participation.
3.2 - vePACT—Governance and Ecosystem Utility
vePACT tokens provide holders with key capabilities within the PACT ecosystem, including:
Governance Rights: vePACT holders may vote on protocol upgrades, fee structures, ecosystem initiatives, and other core decisions, reinforcing their role in shaping the platform’s future.
Access to Participation Benefits: Subject to governance approval, vePACT holders may be eligible to receive non-guaranteed ecosystem benefits or participate in distributions related to protocol usage and fee generation.
These capabilities are designed to reward active engagement rather than passive holding, and all participation benefits are determined transparently through community governance.
3.3 - Participation-Based Rewards
Governance may allocate a portion of net protocol fees (after operational costs) toward mechanisms that reward active protocol contributors. One such mechanism, subject to community approval, is the distribution of a portion of these fees to vePACT holders.
If approved, these distributions would be available in real-time and proportional to a participant’s vePACT balance. Distributions, if any, are triggered by users through the protocol interface and may be adjusted or discontinued by governance at any time. Metrics such as transaction volume, fee generation, and treasury holdings will be transparently displayed on the PACT website.
These tools are intended to align incentives and promote engagement, not to create expectations of profit or passive return