Q2 Update FAQ

DLP Rewards & Incentives

How has the DLP reward system changed?

The new DLP reward system replaces direct VANA emissions with liquidity-based incentives. Instead of rewarding the top 16 DLPs based on stake, rewards now go to all eligible DLPs and are used to buy DLP tokens and add liquidity to their pools.

What happened to the custodied rewards for DLP Creators from Epoch 2 to Epoch 5?

All remaining rewards will be distributed in equal weekly portions over the next full 3-month epoch in $VANA tokens, sent directly to each DLP’s treasury.

Should a DLP wish to use their custodied rewards for liquidity, $VANA can be transferred to a DEX pool under an accelerated timeline.

How are DLP incentives now calculated?

DLP incentives are based on three main factors:

  • 30% → DLP Token Trading Volume
  • 20% → Unique Data Contributors
  • 50% → Data Access Fees

Spreadsheet for the calculation of rewards: Rewards Calculator

Will VANA still be distributed directly to DLP creators?

No. Instead, VANA is used to buy DLP tokens and add them to liquidity pools to strengthen market depth for data tokens.

How does the liquidity incentive mechanism work?

At the end of each epoch, rewards are calculated based on the new DLP scoring system.

The earned rewards are deployed at random intervals during the next epoch to buy DLP tokens and add them to a DEX liquidity pool (with slippage restrictions).

The VANA and DLP token are added as liquidity in a full-range liquidity pool. The liquidity pool will be monitored for any unusual selling pressure that moves price below 15% of the reference price when the liquidity was deployed. This reference price is tracked as a moving average based on the protocol’s DLP token purchases throughout the epoch.

What happens if the liquidity pool cannot handle the reward allocation without exceeding 2% slippage?

If the DEX liquidity pool is too small, rewards would be rolled into the DLP’s rewards pool for the following epoch.

If in the following epoch the DLP still does not have sufficient liquidity, the DLP would lose this incentive.

What is the new epoch duration?

Epochs are now 3 months (instead of 3 weeks) to support long-term planning.

DLP Token & Liquidity Requirements

Do all DLPs now need to launch a token?

Yes. All DLPs must have a token that follows the VRC-20 standard to be eligible for incentives.

What happens to existing DLPs that don’t have a token?

Existing DLPs must launch a token by Epoch 6. If not, they won’t be eligible for incentives.

What happens to existing DLPs that already have a token?

We don’t force anyone to migrate or create a new token.

Foundation will assist incubated DLPs with a migration path for their token that ensures compliance.

It’s mandatory to have a compliant token only if they want to receive rewards in Epoch 7 from Epoch 6.

If a DLP fails to meet the requirements in Epoch 6, will they be immediately cut off or given time to adjust?

New and existing DLPs must meet requirements by the end of Epoch 6. DLPs that migrate sooner have an advantage as they will have a longer period of time to perform well on performance metrics. DLPs should avoid last-minute verification as there may be delays near the end of the epoch.

What are the requirements for a DLP token?

A DLP token must:

  • Follow the VRC-20 DAT standard (compatible with ERC-20).
  • Have clear utility for governance, data access, and incentives.
  • Avoid rebasing or automatic supply adjustments.
  • Include a vesting schedule (minimum 6 months for team allocations).
  • Have onchain price discovery and trading activity.
How much initial liquidity does a DLP need before receiving incentives?

There is no minimum, but if in the following epoch the DLP still does not have sufficient liquidity (measured by whether or not the protocol can deploy rewards without more than 2% slippage), the DLP would lose this incentive, and it would be returned to the overall incentive pool.

DLPs must create a VANA/DLP token trading pair on an approved DEX.

What happens if a DLP’s token price drops below the 15% liquidity range?

The Vana Foundation will review the DLP’s participation in the incentive program.

If price manipulation or lack of liquidity is found, rewards may be revoked.

Validator Staking & Infrastructure Upgrades

What is Data Validator Staking?

Data Validator staking replaces DLP staking and allows users to stake VANA with Data Validators to support secure data access.

Why is DLP staking being removed?

DLP staking was tied to emissions, which didn’t align with real usage.

Data Validator staking ensures rewards go towards securing data infrastructure rather than passive emissions.

Can I still stake VANA?

Yes, but staking will now be done with Data Validators instead of DLPs.

How does Data Validator staking benefit the ecosystem?
  • Increases security for data access.
  • Supports permissioned data queries.
  • Ties staking rewards to actual demand for data.

Data Access & Permissions

How will data access work?

DLPs must migrate to the new Data Access Architecture.

Data is refined into queryable formats and accessed through secure Data Validators.

Access permissions and payments are handled via smart contracts.

How will data access fees be collected?

Fees can be paid in VANA.

Payments go through permissioned contracts, ensuring that data contributors & DLPs earn revenue.

How do DLPs set prices for data access?

DLPs can set prices per schema, table, or column using onchain permission and payment contracts.

Will DLPs need to remove PII (Personally Identifiable Information)?

No. DLPs may remove or mask any PII that they never want to grant access to during the refinement step, but this is up to the DLP’s discretion.

Data Access is not live yet. How can I ensure I get as many rewards as possible in the meantime?

All DLPs can begin migration on April 7. If you want early access (but with more technical friction), reach out to @[email protected].

Transition & Implementation Timeline

When does the new system take effect?

Epoch 5 (Current):

  • Existing rewards continue.
  • DLPs prepare for token launches & data access migration.
  • VRCs released for feedback & adoption.

Epoch 6 (Starting Q2 2025):

  • First cycle of liquidity incentives begins.
  • Data Validator staking replaces DLP staking.
  • DLP token launches required.
  • Data Access system integration starts.

Epoch 7 (Q3 2025 Onward):

  • Full transition to the new incentive model.
  • All rewards flow through liquidity support.
Will older DLPs get a transition period?

Yes. DLPs have until the end of Epoch 6 to launch tokens and integrate data access.

What happens if a DLP does not meet the new requirements?

DLPs that fail to comply with the new token, liquidity, and data access standards will not receive rewards.