Snapshot Voting for NPM Emission at Neptune Mutual

5 min read

Explore the decentralized Snapshot voting for NPM emission rewards at Neptune Mutual.

At Neptune Mutual, we are dedicated to more than just providing DeFi insurance coverage for crypto assets. Our goal is to benefit our community through various rewards and yield opportunities.

Our latest initiative, the NPM emission reward program, is designed to reward liquidity providers (LPs) in Neptune Mutual cover pools. This program involves key elements like governance, cover pool selection, Snapshot voting, and boosted voting power.

In this blog, we'll dive into the details of the NPM emission reward program. We'll explore how the rewards are distributed in a decentralized manner, the mechanics of Snapshot voting, how LPs can maximize their benefits, and the current progress of this initiative.

How the NPM Emission Program Rewards LPs#

We recently launched the NPM emission program to reward our liquidity providers (LPs) at Neptune Mutual. This program grants LPs NPM tokens—Neptune Mutual’s utility tokens—as a reward.

In essence, cover pool LPs earn NPM tokens on top of their share of cover fees. This initiative is our way of appreciating the trust LPs place in our project by providing liquidity. It also serves as an incentive for them to keep their liquidity in our pools and encourages new LPs to contribute.

To go briefly into how it works, NPM emissions are distributed to LPs if the cover pools they have contributed liquidity to qualify for emissions based on the liquidity gauge. In addition to that, LPs must lock their POD tokens to be eligible for these rewards.

Snapshot Voting for Fair and Decentralized NPM Allocation#

Decentralized governance is the hallmark of any DeFi project, allowing the project’s community members to participate in the decision. With the same spirit, we have incorporated Snapshot voting to the emission program to ensure a fair distribution of the NPM tokens.

With the Snapshot platform for NPM emission voting, we make sure that the LPs have the power to influence which cover pools receive what proportion of the emissions. This system promotes transparency and decentralization, eliminating unfair token distribution.

Anyone holding NPM tokens can vote for the qualified cover pools. Once the voting period ends, NPM tokens are allocated to the cover pools based on the votes they pools received.

This means that LPs with NPM tokens can vote for pools where they have liquidity, thereby influencing the distribution in their favor. The more NPM tokens an LP holds, the more votes they can cast.

But there’s more to the equation. To make the reward distribution competitive, we’ve introduced a feature called vote escrow. Users who lock their NPM tokens will receive veNPM, which is basically a token with boosted voting power. Locking NPM for a specified period increases the voting power proportionally. The maximum locking period is 208 weeks, which will increase their voting power by four times.

For a detailed walkthrough of veNPM and the Liquidity Gauge features, check out our YouTube tutorial.

You might want to check another helpful tutorial on Snapshot voting for veNPM and liquidity gauge.

The Progress So Far on the NPM Emission Initiative#

The vote escrow feature has been successfully launched on the Arbitrum network, enabling users to lock their NPM tokens in exchange for veNPM, which provides boosted voting power.

The epoch #1 of Snapshot voting has been completed, during which the community governance voted to distribute 375,000 NPM tokens to two diversified cover pools on ArbitrumPrime dApps and Popular DeFi Apps.

The Snapshot voting period lasted from April 17th to April 27th, allowing NPM and veNPM holders to cast their votes. Their votes determined the allocation of 375,000 NPM tokens across the designated cover pools.

As a result, both pools were selected to receive an equal share of the emission, with each pool receiving 50%. The NPM tokens were distributed proportionally to the LPs of both pools who had locked their POD tokens, over the course of a month, until May 27th.

We are now in the second phase of emission, Epoch #2, where another 375,000 NPM tokens are set to be distributed. The Snapshot voting for this phase was conducted from May 20th to May 23rd.

Based on the voting results, 34.54% of the tokens are set to be allocated to Popular DeFi Apps, while the remaining 65.46% will go to Prime dApps. Token distribution for this phase started on May 28th and will continue until June 27th.

If you are an LP in either of the cover pools on the Arbitrum network, now is the time to lock your POD tokens to receive NPM rewards. The earlier you lock your PODs, the more NPM emissions will be accumulated in your wallet.

The Decentralized Future of Neptune Mutual#

Neptune Mutual is steadily advancing toward full decentralization, with it being the core driving principle for our growth and evolution. The use of Snapshot voting in NPM emission is the testament of the aspiration.

Additionally, we practice decentralized governance in incident payouts, letting users to report and vote on incidents, maintaining fairness and transparency in our protocol. Moving forward, we aim to enhance our ecosystem with robust security measures and community involvement, maintaining our focus on decentralization as the foundation of our growth​.

Final Words#

As we mentioned, we are committed to supporting our community by offering opportunities that reward our policyholders, LPs, and community members. The NPM emission program exemplifies our efforts to ensure a fair and decentralized distribution of NPM tokens to our liquidity providers.

We invite you to join our marketplace as an LP and participate in the NPM emission program. To maximize your benefits, consider locking your NPM tokens to receive veNPM, which will enhance your voting power in Snapshot voting.

Currently, the NPM emission program is live on the Arbitrum network. However, we are excited to announce upcoming launches on the Ethereum and BNB Smart Chain networks.

Stay updated and learn more about Neptune Mutual by following us on X and joining our Discord channel.