Initia and VIP
Cabal plays a critical role within the Initia ecosystem by optimizing governance power and reward distribution.
We allow users to maintain liquidity while participating in a yield-generating governance strategy, without needing to actively vote. Our integration ensures users have a hassle-free experience interacting with the Initia ecosystem.
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.
What is Bribing?
VIP rewards are emitted every 14 days, during which appchains can "bribe" Cabal to increase their share of the weight pool. Bribing is a mechanism through which interwoven rollups incentivize Cabal to direct our governance power towards their gauge, increasing their share of esINIT emissions allocated by Initia's VIP system.
In simple terms, rollups offer rewards to "bribe" Cabal to vote in their favor.
How Does Bribing Benefit Users?
Bribes generate an additional yield stream that is unique to sxINIT and Cabal LP holders. Because Cabal optimizes vote allocation towards the most profitable bribes, depositors receive maximized returns without needing to actively manage their individual VIP participation.
Why Do Rollups Bribe?
Cabal aggregates substantial governance power through pooled deposits of INIT and Enshrined Liquidity Tokens. Bribing Cabal provides rollups with a cost-effective way to secure additional VIP rewards, avoiding the complexity of individually persuading voters each epoch. Because bribes should reflect the value of Cabal’s voting power, this creates a competitive market for governance influence that drives high bribe yields, which significantly enhances the returns for holders of sxINIT and Cabal LP Tokens.
How is Bribe Yield Generated?
Bribe Collection: Each epoch, rollups submit INIT or other incentives as bribes to attract votes from Cabal until the voting snapshot is taken by the Initia L1
Vote Allocation: After the voting snapshot is taken, Cabal calculates and directs its governance power to rollups in a manner that ensures maximum rewards for sxINIT and Cabal LP holders
Rewards Distribution: Once the voting period ends, VIP rewards and collected bribes are distributed proportionally to sxINIT and Cabal LP holders
