Carbon Gauges

Carbon Gauges are the heart of the protocol. These determine how the bridging, staking, and LP rewards are distributed to the users.

Each gauge has a weight system, which determines the rewards allocated. The amount of rewards are determined by how many veC3 is voted on that gauge. The larger the % share, the more rewards is distributed to that specific token.

This allows for the market to determine itself how much liquidity (and therefore bandwidth) is allocated for each pair. This allows the reward process to be largely hands-off, and for the most utilized carbon tokens

As time goes on, we expect the weights to deviate heavily as more liquidity and demand comes on-chain. This creates a natural self-regulating emission distribution where the most LTV is given to the most demanded pair.