Rebasing Rewards

The rebasing mechanism in Elektrik safeguards voting power from dilution as the total token supply increases, ensuring equitable influence for early adopters and committed users. This mechanism acts as a subtle safeguard against inflation, protecting $ELTK lockers from the impact of liquidity mining emissions and preserving platform engagement.

Rebasing occurs weekly (each epoch), providing $veELTK holders with additional $ELTK tokens. The allocation of rebasing is proportional to LP emissions and the ratio of $veELTK to $ELTK supply.

$$\text{Rebase Amount}=\left(\frac{\text{\$veELTK Total Supply}}{\text{\$ELTK Total Supply}}\right)^3\times0.5\times\text{EA}$$

Here, 'EA' represents the Emission Allocation.

The formula is designed to amplify the impact of the ratio difference. Larger $veELTK proportions result in more substantial rebases, while lesser proportions lead to smaller rebases. The amount acts as a hedge against inflation for the $veELTK holders, as their locked token holdings are adjusted according to the increasing $ELTK supply.