Tokenomics Whitepaper

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Valis Tokenomics Whitepaper

1. Introduction

The Valis Tockchain is a blockchain purpose-built from the ground up to support Valis Stablecoins. It delivers high transaction throughput and reliability in a fee-less trading environment, making it ideal for DeFi applications. Its native token, VNET, incentivizes network contributions, prioritizing liquidity provision over node operation. This whitepaper details VNET’s tokenomics, covering supply, distribution, utility, and economic incentives.

2. Valis Token Catalog

This whitepaper primarily details VNET, the native token of the Valis Tockchain ecosystem. This section provides a concise overview of all Valis-issued tokens, outlining our portfolio.

2.1. Valis Token Catalog Description

The Valis ecosystem includes the following tokens, each with a distinct purpose and utility:

The VSTABLE token launched on November 26, 2024. VALIS and VNET launches are confirmed, with VNET issuance starting at Tockchain mainnet launch.

2.2. Valis Token Catalog Supply

The supply of the Valis Token Catalog is as follows:

3. Valis Tokenomics Key Concepts

Below are the core concepts behind VNET’s tokenomics in the Tockchain Network, a decentralized network built to encourage liquidity, security, and growth through its native token, VNET. For more details, check out the Valis Glossary.

3.1. Basic Concepts

• Tock: The core time unit in the Tockchain DLT, equal to a one-second UTC timestamp in the Tockchain Consensus mechanism, during which one block is generated and one VNET reward is minted and distributed. The word “Tock” is a portmanteau coined by Valis blending “Tick" (a time interval) and “Block" (from Blockchain), to form "tock".
• Tockchain: The name of the blockchain used by Valis. The word “Tockchain” is a portmanteau coined by Valis blending “Tock" and “Blockchain".
• Tockchain Stakeholders: The group formed by the following three entities:
• Liquidity Providers: Supply capital to pools and orders, enhancing network liquidity.
• Consensus Node Operators: Generate blocks, strengthening network security.
• Valis: Oversees ecosystem development and maintenance.
• VNET: The native, non-governance token of the Tockchain Network. VNET is minted and distributed every Tock as Network Rewards for contributions from Tockchain Stakeholders. VNET holders receive a monthly share of Valis Stablecoins’ gross revenue through VUSD payouts to the VNET Liquidity Pool.

3.2. Reward Concepts

• Tock Reward Amount: The quantity of VNET tokens minted and distributed per Tock, starting at 1 VNET (pre-halving) and halving every four years.
• Network Reward Cycle: A ten-second period during which 10 VNET are minted and distributed, one per Tock, to different Tockchain Stakeholders.
• Network Reward Cycle Amount: The total quantity of VNET tokens minted and distributed over a Reward Cycle, starting at 10 VNET (pre-halving), calculated as 1 VNET per Tock × 10 Tocks.
• Tock Reward System: The mechanism that mints and distributes 1 VNET every Tock to a specific stakeholder group, with each Tock in a Network Reward Cycle corresponding to a different recipient.
• Halving: The event that occurs every four years after the launch of Tockchain Mainnet, in which the Tock Reward Amount is halved, reducing the amount of VNET minted and distributed per Tock. This mechanism controls inflation and ensures long-term scarcity. The initial reward of 1 VNET per Tock will decrease over time, for example to 0.5 VNET after the first halving.
• VUSD Payout: The monthly distribution of VUSD (Valis Stablecoin) to the VNET Liquidity Pool, proportional to the amount of VNET held by each Tockchain Address.
• VNET Liquidity Pool: A decentralized reserve managed by the Tockchain Network, where VUSD from Valis Stablecoins Gross Revenue is credited monthly, proportional to VNET holdings, as part of the VUSD Payout process.
• Network Rewards: The VNET tokens minted and distributed every Tock as incentives for network contributions, such as liquidity provision, node operation, and ecosystem oversight. These rewards are treated as a contra-revenue item, deducted from Valis Stablecoins Gross Revenue to calculate Valis Stablecoins Net Revenue, with their allocation determined by Valis as a variable percentage.

3.3. Richlist Concepts

• Richlist: An hourly-updated ranking of addresses by VUSD-equivalent holdings, which determines eligibility and selection probability for the Richlist Lottery.
• Richlist Rank: An address’s position in the Richlist based on VUSD-equivalent holdings. Higher ranks qualify for more Richlist Tiers and greater chances of receiving VNET rewards.
• Richlist Lottery: A sub-component of the Tock Reward System that randomly selects a winner from a specific Richlist Tier each Tock, distributing 1 VNET, with higher-ranked addresses having better odds.
• Richlist Tier: One of eight cumulative categories within the Richlist, grouping addresses by VUSD-equivalent holdings. Because tiers overlap, an address can qualify for multiple tiers based on its rank. Tiers determine eligibility and selection probability in the Richlist Lottery for VNET rewards. Higher tiers grant more entries and better odds. Rankings and tiers update hourly.
• Richlist Segment: A non-overlapping group of consecutive ranks in the Richlist (e.g., ranks 1-10, 11-25), used for analyzing Network Rewards distribution and selection metrics.

3.4. Economic Concepts

• Valis Stablecoins Gross Revenue: The total revenue generated by Valis Stablecoins before any deductions, including network rewards or operating expenses.
• Valis Stablecoins Net Revenue: Gross revenue minus network rewards, which are a variable percentage of gross revenue determined by Valis and available for distribution to VNET holders.
• Valis Stablecoins Net Profit: Net revenue minus all operating expenses, taxes, and other costs, representing the final profit available for distribution to VSTABLE holders.

4. VNET Minting and Distribution

VNET is the native reward token of the Valis Tockchain Network, minted and distributed every Tock (second). This simple, reliable, and perpetual process provides predictability, clarity, and consistency for all participants.

Below, we break down how the minting and distribution works for each stakeholder: Liquidity Providers, Consensus Node Operators, and Valis. For clarity, we assume the native stablecoin is VUSD and no halving events have occurred yet, meaning 1 VNET is minted and distributed per Tock.

4.1. Reward Distribution Overview

During each Reward Cycle, the Cycle Reward Amount is distributed among the Tockchain Stakeholders as shown in the table below. Assuming 10 VNET tokens per cycle pre-halving, the following percentages illustrate how the Cycle Reward Amount is divided. For example, Liquidity Providers receive 80% of 10 VNET, equaling 8 VNET per cycle:

4.2. Reward Process Overview

The Tock Reward System operates in a continuous process minting and distributing VNET Tokens. Every Tock (second), the system mints 1 VNET (pre-halving) and immediately distributes it to a designated stakeholder group. A Reward Cycle spans 10 Tocks (10 seconds), during which the distribution rotates through the following groups:

The accumulated amount, known as the Cycle Reward Amount, starts at 10 VNET per cycle (1 VNET per Tock × 10 Tocks) and decreases through halving events. This cycle repeats every 10 seconds, ensuring consistent and predictable reward distribution to all stakeholder groups.

The distribution of the cycle reward amount is implemented as a logged coinbase event, with allocations recorded to a designated address for tracking and transparency. This ensures all allocations are verifiable on-chain.

5. Reward Distribution to Liquidity Providers

Liquidity providers earn VNET rewards through the Richlist Lottery, which is based on their on-chain VUSD-equivalent holdings. Each Tock, one lottery is conducted for a specific Richlist Tier, distributing 1 VNET to a winner from that tier.

5.1. Richlist Adjusted Value

The Richlist Adjusted Value determines an address's rank in the Richlist by evaluating the "meaningful" value of its holdings.

This adjusted value unifies all forms of liquidity, such as wallet balances, liquidity pool contributions, orderbook orders, and hashlocks, into a single metric.

The valuation parameters differ by asset type and can be adjusted via hardfork:

• The Tockchain native stablecoin (e.g., VUSD) is valued at full face value (1:1).
• VNET is discounted based on a simulated sale of 1% of its total supply.
• Other tokens are discounted based on a simulated sale of 10% of their supply.

The table below summarizes how different holding types are valued:

Note that pool depth affects adjusted value. The same holdings (e.g., 500 VUSD + 500 TokenX) yield different adjusted values based on pool depth. A shallow pool ($100K) discounts TokenX heavily ($250), while a deep pool ($1M) preserves it ($475), incentivizing robust liquidity.

This method incentivizes pairing assets with VUSD in deep liquidity pools to maximize credit, driving VUSD demand and enhancing network liquidity.

The implications are powerful: isolated TokenX gets near-zero value, while pairing with VUSD unlocks full credit, pulling in VUSD. This unifies liquidity types, rewarding "meaningful" contributions and creating a flywheel—deeper pools boost trading, issuance, yield, and VNET value.

Since your VUSD contribution gets full value, plus TokenX's adjusted value (up to full in a deep pool), making the total 2x your VUSD input if TokenX matches. In contrast, TokenX alone in a wallet gets minimal credit, but paired in LP, it unlocks value, turning "almost nothing" into a significant boost.

This design encourages pairing non-VUSD assets with VUSD in deep pools to maximize adjusted value for Richlist ranking.

5.2. Richlist Tiers

The Richlist is divided into eight cumulative, overlapping tiers based on address rankings: Top 10, Top 25, Top 50, Top 100, Top 250, Top 500, Top 750, and Top 1,000. An address may qualify for multiple tiers depending on its rank. Each additional tier increases an address's chances of being selected.

This structure rewards larger holders with more entries while maintaining meaningful opportunities for smaller participants. Rankings update hourly, allowing for dynamic tier changes over time.

5.3. Tier Eligibility

As described above, addresses qualify for multiple tiers depending on their rank. Higher ranked addresses are eligible for more tiers, which gives them more chances to win rewards during each cycle.

The table below shows sample addresses and the number of tiers they qualify for, indicated in the "# Tiers" column. For example, address number 5 appears in all eight tiers and has eight chances to win 1 VNET per cycle. Address number 914 qualifies for just one tier and has a single chance. Address 1225 is not eligible for any tier and has no chance of selection.

5.4. Expected Selections

Each value in the table below shows the decimal chance of an address being selected in that tier's independent lottery during a Reward Cycle. For example, an address in the Top 10 has a 0.10 chance (1 in 10), while one in the Top 750 has a 0.00133 chance (1 in 750, rounded to 0.0013).

An address’s total expected selections per cycle is the sum of its expected selections across all Richlist Tiers it qualifies for, as shown in the “Total” column. Since each tier operates independently, addresses included in multiple tiers can win multiple times in a single cycle. For example, address number 5, present in all eight tiers, could theoretically win up to 8 VNET per cycle.

The average number of cycles an address must wait to win at least once is shown in the “Period (cycles)” column. This value is calculated as 1 divided by the “Total” expected selections. For example, an address with a “Total” of 0.1783 has a period of approximately 5.61 cycles, meaning it wins the Richlist Lottery about once every 5-6 cycles on average (i.e., roughly 1 VNET every minute).

The "Period (minutes)" column shows the average time an address must wait to win at least once. This value is calculated by dividing the "Period (cycles)" by 6, as each cycle takes 10 seconds (10 seconds ÷ 60 seconds = 1/6 of a minute).

The chart below highlights how expected selections vary across tiers.

However, higher-ranked liquidity providers appear in multiple tiers, so their expected selections compound, resulting in significantly higher total expected selections than shown in the per-tier chart. The chart below illustrates the total expected selections per liquidity provider based on their Richlist Rank.

The stacked bar chart below shows how each liquidity provider’s total expected selections are distributed across tiers 1 to 8, highlighting each tier’s contribution to their overall selection probability.

5.5. Incentive Structure

The system is designed to reward larger holders with greater chances of selection, while ensuring smaller participants also retain meaningful opportunities to earn rewards.

As shown above, top ranked addresses hold a clear advantage. A Top 10 address has an expected selection rate of 0.1783 per cycle, winning once every 5.6 cycles (1 divided by 0.1783). A Tier 8 address has an expected selection rate of 0.001 per cycle, winning once every 1,000 cycles (1 divided by 0.001). The Top 10 address’s selection rate is about 178 times higher than that of the Tier 8 address.

Hourly Richlist updates introduce dynamism, allowing addresses to move between tiers as their holdings change.

5.6. Richlist Segments

Richlist Segments are non-overlapping sets of consecutive ranks in the Richlist, used to group addresses based on their VUSD-equivalent holdings. Each range defines a distinct segment (for example, ranks 1 to 10, 11 to 25, 26 to 50). Unlike Richlist Tiers, which are cumulative (for example, the Top 25 includes all addresses from ranks 1 to 25), Segments are mutually exclusive (for example, ranks 1 to 10 and 11 to 25 are separate and do not overlap).

In the table below:

• The “Addresses” column shows how many addresses fall within each range.
• The “# Tiers” column lists the Richlist Tiers each segment qualifies for.
• The “Selections” column shows the expected selections per address, based on the tiers that range qualifies for.
• The “Total Selections” column shows the total expected selections for the entire segment.

Total expected selections per segment is the sum of the per-tier expected selections for all tiers that range qualifies for, multiplied by the number of addresses in the range. For example, for ranks 1 to 10:

0.1000 + 0.0400 + 0.0200 + 0.0100 + 0.0040 + 0.0020 + 0.0013 + 0.0010 = 0.1783.

Multiplying 0.1783 by 10 addresses gives 1.783 total expected selections for that range. The sum across all ranges equals 8, confirming the system’s design.

5.7. Reward Distribution by Segment

The chart below visualizes how the 8 expected selections per cycle are distributed across Richlist Segment. By aggregating the total expected selections for each range, we can see how rewards are allocated across different portions of the Richlist.

5.8. Reward Distribution by Address Rank

Although some Richlist Segments have similar shares of expected selections per cycle, the number of addresses in each range differs greatly. For example, the 11-25 range captures 1.17 total expected selections across 15 addresses, while the 251-500 range captures a similar 1.08 but spread over 250 addresses. This results in significant differences in expected rewards per address between the ranges.

5.9. Mechanism Details

The Richlist Lottery uses the previous tockdatahash, a cryptographic hash derived from the tockdata consensus structure recorded every Tock (second), to introduce pseudorandomness into reward selection. This hash captures consensus results and transaction data from the prior Tock and serves as a secure and verifiable seed for the lottery.

By deterministically deriving randomness from on-chain consensus data, the system ensures the selection process is unpredictable, fair, and fully auditable. This approach eliminates the need for external randomness sources or complex setups, making the reward distribution elegant, robust, and transparent.

5.10. Design Advantages

The Richlist Lottery mechanism is an elegant and efficient alternative to traditional mining or staking. It replaces complex infrastructure and high barriers to entry with a simple, transparent system based on VUSD deposits. Users who hold VUSD are automatically entered into the reward pool after one hour. Rewards are distributed through a deterministic probabilistic mechanism based on the previous tockdatahash. This ensures fairness, auditability, and resistance to manipulation without adding unnecessary complexity.

What makes the system particularly refined is the game-theoretic layer it introduces. Since rewards are randomly distributed across the top 1,000 Richlist positions, users are incentivized to strategically spread funds across multiple positions (addresses) to maximize their chances. The system recalibrates the Richlist every hour and distributes rewards 3,600 times per hour, maintaining dynamic responsiveness and continuous engagement. Most importantly, all incentives align to lock more value into VUSD, reinforcing network stability while keeping the reward process light, inclusive, and self-balancing.

6. Reward Distribution to Consensus Node Operators

Consensus Node Operators produce blocks and secure the Tockchain network. To compensate their role, 1 VNET is awarded during Tock #9 of each Reward Cycle through a deterministic random lottery. One operator is selected per cycle from the active set, with the process ensuring all participants receive an approximately equal share over time, with less than 1% variance.

This mechanism reuses the same lottery logic as the Richlist Lottery but applies it to the set of Consensus Node Operators instead of a Richlist. Reusing a single code path minimizes complexity in the core protocol and ensures consistent reward logic across the system.

7. Reward Distribution to Valis

Valis, the organization responsible for maintaining and advancing the Tockchain ecosystem, receives 1 VNET during Tock #10 of each Reward Cycle.

This allocation supports core development, infrastructure operations, and ecosystem growth. It ensures continued innovation and long-term sustainability of the network.

8. VNET Supply

8.1. Initial Supply

VNET launches with zero initial supply. There is no premine or pre-allocation of tokens. All VNET tokens are minted exclusively through the Tock Reward System and distributed transparently based on network participation.

This zero-premine approach reinforces VNET’s commitment to decentralization and fairness, distinguishing it from many tokens that begin with large insider allocations.

8.2. Emission Schedule

VNET is minted every second, called a Tock, starting at 1 VNET per Tock. The reward halves every four years to sustainably reduce issuance over time.

The emission schedule for the first 40 years is as follows:

• Years: Four year intervals since mainnet launch.
• Tock Reward (Amount): VNET minted per second during the interval.
• Seconds: Total seconds in each four year period (365 days times 24 hours times 60 minutes times 60 seconds times 4 years).
• VNET Minted: Total VNET minted in each period (Tock Reward multiplied by Seconds).
• VNET Supply: Cumulative total minted from genesis through each period.

This halving of the Tock Reward Amount repeats every four years indefinitely.

Emissions approach zero while maintaining precision to 0.00000001 VNET.

8.3. Maximum Supply

After 100 years, spanning 25 halving periods, the total VNET minted reaches approximately 252,287,992. The theoretical maximum supply, if minting continued indefinitely, is 252,288,000. This means only 8 VNET remain to be minted beyond year 100, underscoring the extreme tapering of new issuance over time. For additional details on these calculations, please refer to Annexes 1 and 2.

9. VNET Utility

9.1. Utility Source

Most crypto networks and DeFi protocols provide value to their native tokens by tying them to transaction, trading, or protocol fees. This is done either directly through fee payment or indirectly through revenue-sharing mechanisms.

Valis rejects this model and takes a different approach. We eliminate these fees entirely to reduce friction and promote growth. While this removes barriers to adoption, it also means that VNET’s value cannot depend on these conventional revenue sources.

Instead, VNET’s value is directly anchored to the profitability of the Valis Stablecoins line of business (LOB). Specifically, VNET holders are entitled to a percentage of the Valis Stablecoins’ gross revenue.

9.2. Payout Distribution Mechanics

The Valis ecosystem offers two distinct benefits to Tockchain Stakeholders:

• VNET Rewards: Distributed every Tock (second) as incentives for contributions like liquidity provision and node operation.
• VUSD Payouts: A share of the revenue generated by Valis Stablecoins, distributed monthly to VNET holders based on the amount of VNET they hold.

This section focuses on the latter, the VUSD payout enabled by holding VNET.

Once the Valis Stablecoins line of business begins generating revenue, Valis will distribute it monthly in VUSD by injecting funds into the VNET liquidity pool. This mechanism delivers multiple benefits:

• Enhanced Liquidity: Adding VUSD directly to the pool increases available liquidity, making VNET more attractive to both traders and investors.
• Automatic Compounding: Rewards are reinvested into the pool by default, giving VNET holders increased exposure to its growing value over time without requiring any action.
• Effortless Access: VNET holders can withdraw their share of VUSD at any time directly from the pool. No claims, staking, or manual steps are needed.
• Price Support Dynamics: As more VUSD is added, each VNET is effectively backed by a larger reserve. If this redeemable value is reflected by the market, it can support or increase VNET’s price.

The VUSD payout distribution mechanism complements the VNET reward system by pairing real-time incentives for participation with sustainable, long-term value accrual for holders.

9.3. Accounting Treatment

Valis treats Network Rewards as a contra-revenue item under the US Generally Accepted Accounting Principles (GAAP) framework, or as revenue reductions under the UK Financial Reporting Standard (FRS) 102 (aligned with International Financial Reporting Standards, IFRS 15). These rewards are deducted from the gross revenue of the Valis Stablecoins line of business (LOB) to calculate net revenue, which, after accounting for operating expenses, determines the net profit available for distribution to VSTABLE holders.

This approach mirrors the accounting practices of payment schemes like Visa and Mastercard, where "Client Incentives" and "Rebates and Incentives," respectively, are deducted from gross revenue as a cost of driving network activity before calculating net revenue. Network Rewards are designed to attract and retain the liquidity and services essential for the efficient operation of Valis Stablecoins, ensuring a robust ecosystem.

The initial allocation of Network Rewards is set at 10% of Valis Stablecoins’ gross revenue, but this percentage is adjustable—either upward or downward—based on network , liquidity depth, and strategic priorities, as determined by Valis. This flexibility allows Valis to optimize the ecosystem’s long-term success.

In this structure, Network Rewards paid to VNET holders reduce gross revenue to net revenue, while operating expenses further reduce net revenue to net profit, distributed to VSTABLE holders. This establishes a clear financial hierarchy: VNET holders are prioritized as a network-level cost, with VSTABLE holders receiving the residual net profit.

9.4. Risks

VNET's value hinges on the success of Valis Stablecoins. If the stablecoins fail to generate sufficient revenue (due to low adoption or poor reserve management), if the Tockchain network experiences bugs or downtime, or if regulatory hurdles arise, the percentage of gross revenue backing could diminish returns, undermining VNET. To sum up, if the Valis ecosystem underperforms, VNET’s backing weakens.

10. Tockchain Tokenomics Rationale

The Tockchain Ecosystem prioritizes liquidity provision above all other contributions. This section explains the reasoning behind allocating a dominant share of each cycle reward (80%, or 8 VNET pre-halving) to liquidity providers, in order to drive strong capital participation.

10.1. Why Liquidity Matters

Liquidity determines how easily assets can be bought or sold without causing large price swings. More liquidity makes trading smoother and more appealing:

1. Lower Slippage: Slippage is the difference between the expected price and the actual execution price. With more buyers and sellers, large trades move the price less, reducing slippage and making trading cheaper and more predictable.
2. Tighter Bid-Ask Spreads: The bid-ask spread is the gap between the highest buying price and the lowest selling price. Liquidity narrows this gap, lowering trading costs and encouraging more frequent trades.
3. Better Market Depth: Market depth refers to how many orders are available at various price levels. A deeper market means larger trades can be executed without significant price impact.
4. Lower Volatility: Liquid markets absorb large trades more smoothly, reducing sudden price swings and making trading feel more stable.
5. Greater Trader Confidence: High liquidity makes markets harder to manipulate and signals reliability. Traders are more likely to participate when they trust the environment.

10.2. Maximizing Liquidity

The Valis Tockchain is purpose-built from the ground up to maximize network liquidity:

• Performance Design: Valis reduces infrastructure costs by minimizing node count and leveraging multi-core CPU capacity. Protocol communication is kept to a minimum, allowing the network to operate efficiently on average hardware. This lowers operational costs and increases the share of rewards allocated to liquidity providers.
• Consensus Design: Valis uses a quorum-based consensus mechanism that requires agreement from two-thirds of the nodes. This model consumes less energy than Proof of Work and delivers higher throughput than Proof of Stake. Reduced consensus overhead improves efficiency and enables greater reward allocation toward liquidity provision.
• Protocol Design: Tockchain implements fee-less trading at the protocol level, for both liquidity pools and orderbooks, via special Tockchain Transaction Types. Fee-less trading increases activity by removing the cost barrier. When users are not required to pay fees or hold the native token, they are more likely to trade frequently and in larger volumes, driving up overall trading activity.
• Tokenomics Design: Unlike most chains, Valis prioritizes liquidity provision over node operation. A dominant share of each cycle reward (80 percent, or 8 VNET before halving) is allocated to liquidity providers to drive strong capital participation. Higher Total Value Locked (TVL) in VUSD increases Stablecoins Yield.
• Liquidity Pools Design: The Valis ecosystem supports one Tockchain per stablecoin (e.g., Tockchain VUSD, Tockchain VEUR). Up to 32,767 assets can be created in each Tockchain, each one with every asset paired against the native stablecoin (e.g., VUSD) in a 50/50 liquidity pool. This makes the native stablecoin the core trading medium. In the VUSD Tockchain, for example, all trades must be routed through VUSD: to swap Token A for Token B, users first trade Token A for VUSD, then VUSD for Token B.
• Supply Chain Design: Valis achieves zero VUSD slippage through full vertical integration. Yield revenue from the application layer is redirected to offset trading costs at the protocol layer, where trading is executed natively within Tockchain. By controlling both layers, Valis is able to preserve the 1:1 VUSD peg without price impact, which increases trading volumes, and drives broader VUSD adoption.

10.3. A Liquidity-based Flywheel

This structure drives consistent demand for VUSD and powers a profitable flywheel:

1. Higher VNET value incentivizes more liquidity provision.
2. The combined effects of increased liquidity, fee-less trading, and pairing all assets with VUSD significantly enhance trading activity.
3. More trading and zero VUSD slippage drive greater VUSD issuance.
4. Greater VUSD issuance increases Valis Stablecoins yield, enabling Valis to offset more trading fees and VUSD slippage.
5. Valis distributes Stablecoins yield to the VNET liquidity pool, compounding rewards and increasing VNET’s redeemable value.
6. Higher Stablecoins yield and VUSD payouts to the liquidity pool reinforce VNET value, restarting the flywheel with increased momentum.

11. Governance

Combining network contribution rewards and governance rights in a single token often creates misaligned incentives, placing the network's future in the hands of those focused solely on financial gain. Granting governance power to participants uninterested in these responsibilities leads to ecosystem stagnation at best and decline at worst.

The governance structure of the Valis Tockchain Network is still under discussion. Until a final decision is made, Valis will oversee governance with community input.

12. Conclusion

VNET tokenomics represent a groundbreaking approach that strategically emphasizes liquidity provision as the cornerstone of the ecosystem. Drawing value directly from Valis Stablecoins revenue, VNET functions as a non-governance utility token with a mathematically elegant supply model. Its emission schedule follows a four-year halving pattern, beginning from zero and capped at 252,288,000 VNET. This carefully calibrated design creates a self-reinforcing economic flywheel that aligns participant incentives with sustainable ecosystem growth and development.

Annexes

Annex 1: VNET Maximum Supply

The VNET token supply is generated through a halving mechanism, where the reward per Tock (a one-second interval) decreases by half every four years. This structure forms a geometric series, allowing us to calculate the theoretical maximum supply if the process were to continue indefinitely.

Emission Structure

• Initial Reward: 1 VNET per Tock
• Halving Interval: Every 4 years
• Seconds per 4-Year Period: 126,144,000 seconds (365 days/year × 24 hours/day × 3600 seconds/hour × 4 years)

Total VNET Minted per Period

For each 4-year period n:

Maximum Supply Calculation

The cumulative supply as the number of periods approaches infinity is the sum of an infinite geometric series:

Therefore, by shifting the index $k = n - 1$, this becomes:

The sum of the infinite geometric series is:

Hence,

Thus, the maximum possible supply of VNET is 252,288,000 VNET.

Annex 2: VNET Supply After 100 Years

This section shows how after a century of halving every four years nearly all VNET has been minted with only eight tokens remaining.

Cumulative Minted Supply

After 100 years (25 halving cycles) the total minted supply is the finite sum of a geometric series,

Since 2²⁵ = 33,554,432,

So,

Rounded to whole tokens gives 252,287,992 VNET minted in 100 years.

Remaining Mintable Supply

The theoretical maximum is:

Thus, the unminted remainder after 100 years is:

Only eight VNET remain, highlighting how the halving mechanism drives new issuance toward zero over time.

On this Page

• Tokenomics Whitepaper
• Valis Tokenomics Whitepaper
• 1. Introduction
• 2. Valis Token Catalog
• 2.1. Valis Token Catalog Description
• 2.2. Valis Token Catalog Supply
• 3. Valis Tokenomics Key Concepts
• 3.1. Basic Concepts
• 3.2. Reward Concepts
• 3.3. Richlist Concepts
• 3.4. Economic Concepts
• 4. VNET Minting and Distribution
• 4.1. Reward Distribution Overview
• 4.2. Reward Process Overview
• 5. Reward Distribution to Liquidity Providers
• 5.1. Richlist Adjusted Value
• 5.2. Richlist Tiers
• 5.3. Tier Eligibility
• 5.4. Expected Selections
• 5.5. Incentive Structure
• 5.6. Richlist Segments
• 5.7. Reward Distribution by Segment
• 5.8. Reward Distribution by Address Rank
• 5.9. Mechanism Details
• 5.10. Design Advantages
• 6. Reward Distribution to Consensus Node Operators
• 7. Reward Distribution to Valis
• 8. VNET Supply
• 8.1. Initial Supply
• 8.2. Emission Schedule
• 8.3. Maximum Supply
• 9. VNET Utility
• 9.1. Utility Source
• 9.2. Payout Distribution Mechanics
• 9.3. Accounting Treatment
• 9.4. Risks
• 10. Tockchain Tokenomics Rationale
• 10.1. Why Liquidity Matters
• 10.2. Maximizing Liquidity
• 10.3. A Liquidity-based Flywheel
• 11. Governance
• 12. Conclusion
• Annexes
• Annex 1: VNET Maximum Supply
• Emission Structure
• Total VNET Minted per Period
• Maximum Supply Calculation
• Annex 2: VNET Supply After 100 Years
• Cumulative Minted Supply
• Remaining Mintable Supply