Pool & Emission Allocation

Driving Liquidity and Reward Distribution

How Does Emission Allocation Work on Tapp Exchange? Emission allocation on Tapp Exchange determines how $TAPP rewards are distributed across the platform's liquidity pools each epoch. It is the core mechanism through which the community collectively decides where incentives flow, ensuring that liquidity is directed to the pools that matter most to the ecosystem.

How Emission Allocation Works on Tapp:

1. Voting Power Allocation:

• Tapp uses a vote-escrowed token system where users lock their $TAPP tokens to receive $veTAPP. These $veTAPP tokens represent the user's voting power within the platform.

• Users vote with their $veTAPP on specific pools, signalling where they believe liquidity incentives should be directed for the upcoming epoch.

2. Pool Voting:

• Each liquidity pool on Tapp can receive votes from $veTAPP holders. For example, users can vote on the $TAPP/$APT pool, an $APT/$USDC pool, or any other active pair.

• By voting on a pool, users influence the share of $TAPP emissions that pool will distribute to its committed liquidity providers. The more votes a pool receives, the larger its share of emissions for that epoch.

3. Reward Distribution:

• The $TAPP emissions distributed to a liquidity pool are proportional to the votes it receives from $veTAPP holders. Pools with stronger voting support attract more rewards, which in turn incentivises deeper liquidity provision.

• In return, voters earn 100% of the trading fees generated by the pools they vote for, proportional to their share of the vote weight on that pool. This creates a direct feedback loop between voting, liquidity depth, and fee generation.

4. Flexibility and Incentives:

• The system offers significant flexibility in how rewards are allocated. Projects and protocols can offer bribes, additional incentives paid to $veTAPP voters, to attract votes toward their pools and bootstrap liquidity.

• This creates a competitive, market-driven environment where pools vie for community support. Capital flows to where the opportunity is strongest, resulting in efficient allocation across the platform.

Benefits of Tapp's Emission Allocation Model:

• Decentralised Decision-Making: $veTAPP holders have a direct role in shaping how rewards are distributed across the platform. The incentive structure reflects the collective priorities of the community rather than top-down decisions.

• Efficient Capital Allocation: By directing emissions to the pools that receive the most votes, Tapp ensures liquidity concentrates where the community sees the most value, improving execution quality and overall market efficiency.

• Enhanced Engagement: The weekly epoch cycle encourages active, ongoing participation from $veTAPP holders. The ability to adjust votes each epoch keeps the ecosystem dynamic and rewards users who stay engaged with the platform's growth.