From: 1. Introduction → To: 5.2. Tier Eligibility

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.