Initia and VIP
What is Initia?
Initia is a modular Layer 1 blockchain that enables the creation of purpose-built "interwoven rollups" (Layer 2s) on top of its base layer. It provides an integrated ecosystem where rollups can leverage Initia’s shared security, liquidity, and governance mechanisms.
What is VIP?
The Vested Interest Program (VIP) is Initia’s incentive system that distributes INIT rewards to interwoven rollups based on two pools:
Balance Pool: The more INIT and Enshrined Liquidity Tokens a rollup accumulates, the greater its share of INIT emissions
Weight Pool: Holders of INIT and Enshrined Liquidity Tokens can vote in a gauge system to direct emissions towards a specific rollup
VIP aligns economic incentives by ensuring interwoven rollups that attract liquidity and governance participation are rewarded proportionally.
Cabal plays a critical role in VIP by optimizing governance power and reward distribution, making it the gateway for users and rollups looking to maximize their INIT exposure.