Rebase

vePEG holders receive a rebase proportional to PEG emissions and to the ratio of vePEG to PEG supply, reducing vote power dilution for vePEG.

The weekly rebase amount is calculated with the following formula:

$$ w_{rb} = 0.5 w_e \left( 1 - \frac{s_{vePEG}}{s_{PEG}}\right)^2 $$

Here, the weekly rebase amount \(w_{rb}\) is proportional to the weekly emissions ($w_e$) and the ratio between locked and liquid PEG tokens. This rebase formula will reward vePEG holders most when locking rates decrease, incentivizing new lockers to step in. vePEG supply does not affect weekly emissions distributed to liquidity providers.