BP

Beluga's non-dilutive incentive system used for rewarding locking in Beluga's vaults.

Beluga's BP token is an incentive system used by Beluga's vaults to reward users of our beTokens with BELUGA voting power whilst also not diluting pre-existing BELUGA holders!

BP is designed as a reward token that is equal to exactly 1 BELUGA in votes. Currently, BP can be farmed by locking fBEETS into our beBEETS vault, earning you a stake in Beluga's votes!

Long-term Dilution Prevention

To prevent long=term dilution from incentives, BP employs its own mechanism to prevent dilution. This is through a biweekly epoch system which resets the balances of BP holders on each epoch.

To understand how BP's system works, it can be thought of this way:

Let's say a user has a stake of 1000 fBEETS in beBEETS. This stake has generated them a total of 10 BP. This 10 BP represents 10 BELUGA in voting power on Beluga's governance votes.

The current epoch is epoch #5 and the user claims this 10 BP at that epoch. This marks their funds at epoch #5. As long as epoch #5 is currently on-going, they will be holding 10 BP tokens.

Five days later, the epoch ends and advances to epoch #6. After this epoch advances, the balance of the user is reset to 0 as BP has entered a new epoch.

This is how BP is designed and how it prevents voting power from being diluted in the long term from incentives.

The amount of BP can also be claimed at any time, without any effect from epoch advancements. This means that users have the option to stockpile their BP for specific epochs without having to be subject to the biweekly reset of BP voting power.

It should be noted that claimable/pending BP does not count towards voting power in Beluga's votes. Only BP held in your wallet is counted as it is affected by its epoch system.

Secondary Markets for BP

BP also opens up the opportunity for secondary markets for BP tokens to accumulate voting power over Beluga's votes.

In the near future, we will be launching an orderbook system which will allow users to buy and sell BP tokens.