Merge pull request #1194 from oceanprotocol/issue1193-improve-docs-for-ve-df

Issue1193 improve docs for ve df

SUMMARY.md

@@ -4,7 +4,6 @@
   * [Wallet Basics](building-with-ocean/wallets.md)
   * [Set Up MetaMask Wallet](orientation/metamask-setup.md)
   * [Manage Your OCEAN Tokens](building-with-ocean/wallets-and-ocean-tokens.md)
-  * [FAQ](orientation/faq.md)
 * [Core Concepts](core-concepts/README.md)
   * [Architecture Overview](core-concepts/architecture.md)
   * [Data NFTs and Datatokens](core-concepts/datanft-and-datatoken.md)
@@ -53,10 +52,16 @@
     * [Contributor Code of Conduct](core-concepts/code-of-conduct.md)
     * [Legal Requirements](core-concepts/legal-reqs.md)
   * [Partners & Collaborators](building-with-ocean/projects-using-ocean.md)
-* [Rewards](rewards/veOcean-Data-Farming-Tutorial.md)
+* [veOCEAN & Data Farming](veocean-data-farming/README.md)
+  * [veOCEAN](veocean-data-farming/veocean.md)
+  * [Data Farming 101](veocean-data-farming/df-intro.md)
+  * [Data Farming Background](veocean-data-farming/df-background.md)
+  * [Emissions & APYs](veocean-data-farming/emissions-apys.md)
+  * [Rewards Tutorial](rewards/veOcean-Data-Farming-Tutorial.md)
 * [API References](api-references/README.md)
   * [Aquarius REST API](api-references/aquarius-rest-api.md)
   * [Provider REST API](api-references/provider-rest-api.md)
+* [FAQ](orientation/faq.md)
 
 ## Community
 

orientation/faq.md

@@ -217,3 +217,159 @@ Marketplace name, logo and typeface must be changed by the client. Slight modifi
 Checkout our [roadmap](https://oceanprotocol.com/technology/roadmap) to see what's we are currently working on. If you are interested in tracking our progress towards these goals then take a look at our [github](https://github.com/oceanprotocol/).
 
 </details>
+
+## Data Farming FAQ
+
+<details>
+
+<summary>What assets are eligible for Data Farming?</summary>
+
+The data asset may be of any type — dataset (for static URIs), algorithm for Compute-to-Data, or any other Datatoken token-gated system. The data asset may be fixed price or free price. You can find more details in the [DF Background page](df-background.md#data-assets-that-qualify-for-df)
+
+</details>
+
+<details>
+
+<summary>When exactly does counting start and finish, for a given week?</summary>
+
+The counting starts at 12.01am on Thursday, and ends at 11.59pm on the following Wednesday.
+
+</details>
+
+<details>
+
+<summary>I staked for just one day. What rewards might I expect?</summary>
+
+At least 50 snapshots are randomly taken throughout the week. If you’ve staked just one day, and all else being equal, you should expect 1/7 the rewards compared to the full 7 days.
+
+</details>
+
+<details>
+
+<summary>The datatoken price may change throughout the week. What price is taken in the DCV calculation?</summary>
+
+The price is taken at the same time as each consume. E.g. if a data asset has three consumes, where price was 1 OCEAN when the first consume happened, and the price was 10 OCEAN when the other consumes happened, then the total DCV for the asset is 1 + 10 + 10 = 21.
+
+</details>
+
+<details>
+
+<summary>Can the reward function change during a given week?</summary>
+
+No. At the beginning of a new DF round (DF1, DF2, etc), rules are laid out, either implicitly if no change from previous round, or explicitly in a blog post if there are new rules. This is: reward function, bounds, etc. Then teams stake, buy data, consume, etc. And LPs are given DF rewards based on staking, DCV, etc at the end of the week. Overall cycle time is one week.
+
+Caveat: it’s no at least in theory! Sometimes there may be tweaks if there is community consensus, or a bug.
+
+</details>
+
+## veOCEAN FAQ
+
+<details>
+
+<summary>What is the official formula for the Linear Decay?</summary>
+
+The Linear Decay formula for veOCEAN can be expressed as follows in python.  
+```python
+FOUR_YEARS = 60 * 60 * 24 * 7 * 52
+
+veOcean_balance = OCEAN_amount_locked * (your_unlock_timestamp — current_unix_timestamp ) / FOUR_YEARS
+```
+
+To learn more about systems driving veOCEAN and Data Farming, please [visit our df-py github repository](https://github.com/oceanprotocol/df-py).
+
+</details>
+
+## Staking FAQs
+
+<details>
+
+<summary>What about passive stakers — people who just want to stake in one place and be done?</summary>
+
+Earnings are passive by default
+
+</details>
+
+<details>
+
+<summary>What about active stakers — people who want to do extra work and get rewarded?</summary>
+
+Ot works. Half the DF revenue goes to veOCEAN stake that users can allocate. Allocate well → more $$
+
+</details>
+
+## Pricing FAQs
+
+<details>
+
+<summary>In this scheme, can people stake on fixed-price datasets?</summary>
+
+Yes. They allocate their veOCEAN to datasets. Then DF rewards follow the usual DF formula: DCV * veOCEAN stake.
+
+</details>
+
+<details>
+
+<summary>In this scheme, can people stake on free datasets?</summary>
+
+Yes. They allocate their veOCEAN to datasets. Then DF rewards follow the usual DF formula: DCV * veOCEAN stake. Except in this case although DCV is 0, the gas fees will still count towards calculating rewards.
+
+</details>
+
+<details>
+
+<summary>Does this work for other pricing schemes?</summary>
+
+Yes, from the get-go! It doesn’t matter how data is priced, this works for all schemes.
+
+</details>
+
+## Chains FAQ
+
+<details>
+
+<summary>Which chain is veOCEAN be deployed on?</summary>
+
+[veOCEAN & DF](https://github.com/oceanprotocol/contracts/tree/main/contracts/ve) core contracts are deployed on Ethereum mainnet and allow users to allocate veOCEAN tokens to any asset, on any chain.
+
+</details>
+
+<details>
+
+<summary>Which networks are eligible for Data Farming?</summary>
+Data assets for DF may published in any network where Ocean’s deployed in production: Eth Mainnet, Polygon, BSC, and more.
+
+You can find a list of [all supported chains here](https://docs.oceanprotocol.com/core-concepts/networks).
+
+</details>
+
+<details>
+
+<summary>Where can I find the veOCEAN and DF contracts?</summary>
+
+They are deployed on Ethereum mainnet, alongside other Ocean contract deployments. You can find the [full list of contracts here](https://github.com/oceanprotocol/contracts/blob/main/addresses/address.json).
+
+</details>
+
+<details>
+
+<summary>What is the official veOCEAN epoch start_time?</summary>
+
+veFeeDistributor has a start_time of 1663804800 (Thu Sep 22 2022 00:00:00)
+
+</details>
+
+<details>
+
+<summary>Will the Market still need to be multi-chain?</summary>
+
+Yes, Ocean Market still needs to be multi-chain: all the reasons that we went multi-chain for are as valid as ever.
+
+</details>
+
+<details>
+
+<summary>Which chain supports Fixed Price Assets?</summary>
+
+You can publish Fixed Price Assets to any chain that Ocean supports.
+
+</details>

rewards/veOcean-Data-Farming-Tutorial.md

@@ -1,6 +1,9 @@
-# OCEAN Rewards
+---
+description: Follow this step-by-step guide to get OCEAN rewards.
+---
+# Tutorial: How To Earn OCEAN Rewards
 
-Follow this step-by-step guide to get OCEAN rewards. There are two types of OCEAN rewards: passive and active rewards. OCEAN token holders may generate passive OCEAN rewards by locking up OCEAN in exchange for veOCEAN tokens. veOCEAN tokens can then be allocated to Ocean Market datasets and algorithms to generate active OCEAN rewards.
+There are two types of OCEAN rewards: passive and active rewards. OCEAN token holders may generate passive OCEAN rewards by locking up OCEAN in exchange for veOCEAN tokens. veOCEAN tokens can then be allocated to Ocean Market datasets and algorithms to generate active OCEAN rewards.
 
 [![veOCEAN and Data Farming Rewards](./images/vedf_youtube_thumbnail.png)](https://www.youtube.com/watch?v=zAQlPHkK3og)
 

veocean-data-farming/README.md

@@ -0,0 +1,34 @@
+---
+description: An overview of Ocean Protocol's governance and incentives mechanisms
+---
+# veOCEAN & Data Farming
+
+veOCEAN is a fork of veCRV, and enables you to become a governance participant, eligible to receive rewards and engage with different protocol mechanisms.
+
+The following docs should provide you with sufficient intuition to access, utilize, and build upon the protocol's core incentive and reward system: Data Farming.
+
+![](./images/df_rewards_page.png)
+
+## veOCEAN
+
+Learning about [veOCEAN](veocean.md) will help you answer the question "What can I do with my veOCEAN?" and give you insights on how veOCEAN works. It will teach you everything you need to know about why it exists and how it works.
+
+You will learn that by just holding veOCEAN passively, you are able to earn rewards.
+
+## Data Farming
+
+[Data Farming 101](df-intro.md) will teach you about the different reward systems, how they work, and how to access them. By the end of it, you should be more familiar with how Data Farming works and able to take next steps to curate assets.
+
+[Data Farming Background](df-background.md) will provide you with more intuitions about Data Farming, briefly explain the Reward Function, and how the program evolved over time.
+
+## Further Reading
+
+Finally, if you want to continue expanding your knowledge on OCEAN token emissions, APY estimates, and get useful answers to some of the most common questions, you can read the following:
+
+[Emissions & APYs](emissions-apys.md) will provide you will information about how OCEAN will be released over time through the Data Farming program and provide you with APY studies.
+
+Our [FAQ](faq.md) answers many different questions about staking, chains, deployments, and other details that may be valuable to you.
+
+## Reference
+
+All content within has been assembled via reference of the [Ocean Data Farming Series](https://blog.oceanprotocol.com/ocean-data-farming-series-c7922f1d0e45), official [Ocean Protocol github repositories](https://github.com/oceanprotocol/), and [v4 Whitepapers](https://oceanprotocol.com/tech-whitepaper.pdf).

veocean-data-farming/df-background.md

@@ -0,0 +1,61 @@
+---
+description: Data Farming (DF) incentivizes for growth of Data Consume Volume (DCV) in the Ocean ecosystem.
+---
+# Data Farming Background
+
+It rewards OCEAN to stakers as a function of consume volume and liquidity. It’s like DeFi liquidity mining, but tuned for data consumption. DF’s aim is to achieve a minimum supply of data for network effects to kick in, and once the network flywheel is spinning, to increase growth rate.
+
+## Active Work to Drive APY
+
+Data Farming is not a wholly passive activity. The name of the game is to drive Data Consume Volume (DCV). High APYs happen only when there is sufficiently high DCV. High DCV means publishing and consuming truly useful datasets (or algorithms).
+
+Thus, if you really want to max out your APY:
+1. Create & publish datasets (and make $ in selling them) — or work with people who can
+1. Lock OCEAN and stake veOCEAN on them.
+1. Buy the datasets (and use them to make $) — or work with people who can
+1. Claim the rewards.
+
+Driving DCV for publishing & consuming is your challenge. It will take real work. And then the reward is APY. It’s incentives all the way down :)
+
+## Reward Function
+
+The Reward Function (RF) governs how active rewards are allocated to stakers.
+
+Rewards are calculated as follows:
+1. Distribute OCEAN across each asset based on rank: highest-DCV asset gets most OCEAN, etc.
+1. For each asset and each veOCEAN holder:
+– If the holder is a publisher, 2x the effective stake
+– Baseline rewards = (% stake in asset) * (OCEAN for asset)
+– Bound rewards to the asset by 125% APY
+– Bound rewards by asset’s DCV * 0.1%. This prevents wash consume.
+
+You can find this code inside [calcrewards.py](https://github.com/oceanprotocol/df-py/blob/main/util/calcrewards.py) in the Ocean Protocol [df-py repo](https://github.com/oceanprotocol/df-py/)
+
+## Data Assets that Qualify for DF
+
+Data assets that have veOCEAN allocated towards them get DF rewards.
+
+The data asset may be of any type — dataset (for static URIs), algorithm for Compute-to-Data, or any other Datatoken token-gated system. The data asset may be fixed price or free price. If fixed price, any token of exchange is alright (OCEAN, H2O, USDC, ..).
+
+To qualify for DF, a data asset must also:
+- Have been created by Ocean Smart contracts [deployed](https://github.com/oceanprotocol/contracts/blob/v4main/addresses/address.json) by OPF to [production networks](https://docs.oceanprotocol.com/core-concepts/networks)
+- Be visible on [Ocean Market](https://market.oceanprotocol.com/)
+- Can’t be in [purgatory](https://github.com/oceanprotocol/list-purgatory/blob/main/policies/README.md)
+
+## 4 Phases of Data Farming
+
+Data Farming has evolved over time and will continue to do so as the Emission Curve progresses. We are now in DF main, below are the previous phases and parameters incurred during the evolution of the Data Farming program.
+
+**DF Alpha - Rounds 1-4 (4 wks)**  
+10K OCEAN rewards were budgeted per week. Counting started Thu June 16, 2022 and ended July 13, 2022. Rewards were distributed at the end of every week, for the activity of the previous week. It ran for 4 weeks. The aim was to test technology, learn, and onboard data publishers.
+
+**DF/VE Alpha - Rounds 5-8 (4 wks)**  
+10K OCEAN rewards were budgeted per week. Counting started Thu Sep 29, 2022 and ended Oct 27, 2022. Rewards were distributed at the end of every week, for the activity of the previous week. It ran for 4 weeks. The aim was to resume Data Farming along with veOCEAN, test the technology, onboard data publishers, and keep learning.
+
+**DF Beta - Rounds 9-28 (20 wks)**  
+Up to 100K OCEAN rewards were budget per week. Counting started Thu Oct 27, 2022 and ended March 15, 2023. It ran for 20 weeks. The aim was to test the effect of larger incentives, support ecosystem participation, while continue refining the underlying technology.
+
+**DF Main - Rounds 29-1000+**  
+Immediately followed the release of DF Beta on Thu Mar 16, 2023. Rewards begin at 150k per week and go to 1.1M OCEAN per week. DF Main emits 503.4M OCEAN worth of rewards and lasts for decades. Expected APY is 125% over many months (once fully ramped), staying generous over the long term.
+
+The amount of OCEAN released is determined by the emission schedule as defined by the [Emission Curve](emissions-apys.md#emissions--apys), and perhaps more easily uderstood in the [Reward Schedule](df-intro.md#reward-schedule)

veocean-data-farming/df-intro.md

@@ -0,0 +1,86 @@
+---
+description: An introduction to Data Farming and Ocean Protocol's key incentives.
+---
+# Data Farming 101
+
+Data Farming (DF) incentivizes for growth of Data Consume Volume (DCV) in the Ocean ecosystem.
+
+It rewards OCEAN to liquidity providers (stakers) as a function of consume volume and liquidity. It’s like DeFi liquidity mining, but tuned for data consumption. DF’s aim is to achieve a minimum supply of data for network effects to kick in, and once the network flywheel is spinning, to increase growth rate.
+
+## Reward Categories
+
+Rewards are paid in OCEAN and distributed every week on Thursday as follow:
+
+| Passive Rewards | Active Rewards |
+| ---- | ------- |
+| 50%    | 50%    |
+
+Active Rewards are governed and defined by the [Reward Function](df-background.md#reward-function).
+
+**Final Caveat:** We reserve the right to make reasonable changes to these plans, if unforeseen circumstances emerge.
+
+## How to access DF and claim rewards
+
+Please [follow this tutorial](../rewards/veOcean-Data-Farming-Tutorial.md) to learn how the Ocean Protocol reward programs work, and how to access them.
+
+Otherwise, go to the DF webapp at [df.oceandao.org](df.oceandao.org/) and explore Data Farming for yourself.
+
+### Where to claim?  
+All earnings for veOCEAN holders are claimable on the ”Rewards” page inside the Data Farming webapp on Ethereum mainnet.  
+
+Data assets for DF may published in any [network where Ocean’s deployed in production](../core-concepts/networks.md): Eth mainnet, Polygon, etc.
+
+### When to claim?
+There are fresh rewards available every Thursday. If you wish, you can wait for many weeks to accumulate before claiming. (It’s all on-chain.)
+
+### When to do a first claim?
+From the time you lock OCEAN, you must wait at least a week, and up to two weeks, to be able to claim rewards.  
+
+The nerdy version: if you lock OCEAN on day x, you’ll be able to claim rewards on the first weekly ve “epoch” that begins after day x+7.  
+
+This behavior is inherited from [veCRV](https://curve.readthedocs.io/dao-fees.html); [here’s the code](https://github.com/oceanprotocol/contracts/blob/main/contracts/ve/veFeeDistributor.vy#L240-L256).
+
+## DF Main
+
+DF Main started Mar 16, 2023 in DF Round 29. DF29 has 150K OCEAN rewards available (a 2x increase from DF28). As DF Main progresses, rewards will increase to 300K (another 2x), then 600K (another 2x), then beyond 1.1M OCEAN/week (near 2x) then decaying over time.
+
+As of DF29 (Mar 16, 2023), wash consuming is not profitable. So, organically-generated Data Consume Volume is the main driver of active DF rewards.
+
+[Example APYs are 5–20%](emissions-apys.md#example-apys) between Passive & Active rewards.
+
+Full implementation of DF Main will be over many months, after which DF will be decentralized.
+
+DF Main lasts for decades.
+
+## Reward Schedule
+
+The table below cross-references DF Round Number, Start Date, Phase & Week, Sub-Phase & Week, and OCEAN Rewards/Week.
+
+![](./images/reward_schedule.png)
+_Ocean Reward Schedule for the next 20+ years_
+
+## Ranked Rewards
+
+In DF23 Ranked Rewards were introduced and smooth the reward distribution by using a logarithmic function.
+
+**Since rewards are distributed across the Top 100 assets, all participants (Publishers & Curators) are now incentivized to support a broader range of assets rather than optimizing on a single asset.**
+
+At the top-end, this helps increase quality and diversification of inventory.
+
+At the bottom-end, this eliminates some potential free-rider issues and smooths out the reward distribution.
+
+![](images/ranked_rewards_study.png)
+
+You can read more about the implementation [in this blog post](https://blog.oceanprotocol.com/data-farming-df22-completed-df23-started-reward-function-tuned-ffd4359657ee) and find the full study [in these slides](https://docs.google.com/presentation/d/1HIA2zV8NUPpCELmi2WFwnAbHmFFrcXjNQiCpEqJ2Jdg/).
+
+## Publisher Rewards - 2x Stake
+
+DF gives stronger incentives to publish data services, as follows.
+
+*All the veOCEAN a publisher has allocated to an asset they’ve published (“staked”) is treated as 2x the stake for rewards calculation.*
+1. As a staker, due to their staked veOCEAN on their own assets (1x).
+1. As a publisher, for having veOCEAN staked on their own asset(1x).
+
+The final reward is then calculated and bundled together to be distributed.
+
+You can read more about the implementation [in this blog post](https://blog.oceanprotocol.com/data-farming-publisher-rewards-f2639525e508).

veocean-data-farming/emissions-apys.md

@@ -0,0 +1,56 @@
+---
+description: Details on the emission curves and a study on estimated APYs
+---
+# Emissions & APYs
+
+With veOCEAN, OceanDAO evolves to be more like CurveDAO:
+
+- ve is at the heart with v = voting (in data asset curation) and e = escrowed (locked) OCEAN. The longer the lockup, the more voting and rewards, which reconciles near and long-term DAO incentives.
+- The DAO has increased bias to automation, and to minimizing the governance attack surface.
+
+The baseline emissions schedule determines the weekly OCEAN budget for this phase. The schedule is like Bitcoin, including a half-life of 4 years. Unlike Bitcoin, there is a burn-in period to ratchet up value-at-risk versus time:
+- The curve initially gets a multiplier of 10% for 12 months (DF Main 1)
+- Then, it transitions to multiplier of 25% for 6 months (DF Main 2)
+- Then, a multiplier of 50% for 6 months (DF Main 3)
+- Finally, a multiplier of 100%. (DF Main 4)
+
+We implement the first three phases as constants, because they are relatively short in duration. We implement the fourth phase as a Bitcoin-style exponential: constant, with the constant dividing by two (“halvening”) every four years.
+
+Let’s visualize!
+
+## Emissions — first 5 years.
+
+The image below shows the first 5 years. The y-axis is OCEAN released each week. It’s log-scaled to easily see the differences. The x-axis is time, measured in weeks. In weeks 0–29, we can see the distinct phases for DF Alpha (DF1 // week 0), DF/VE Alpha (DF5 // week 4), DF Beta (DF9 // week 8), DF Main 1 (DF29 // week 28), DF Main 2 (DF80 // week 79), DF Main 3 (DF106 // week 105), and DF Main 4 (DF132 // week 131).
+
+![](./images/emissions_first_5years.png)  
+_OCEAN released to DF per week — first 5 years_
+
+## Emissions — First 20 years.
+
+The image below is like the previous one: OCEAN released per week, but now for the first 20 years. Week 131 onwards is DF Main 4. We can see that the y-value divides by two (“halvens”) every four years.
+
+![](./images/emissions_first_20years.png)  
+_OCEAN released to DF per week — first 20 years_
+
+## Total OCEAN released.
+
+The image below shows the total OCEAN released by DF for the first 20 years. The y-axis is log-scaled to capture both the small initial rewards and exponentially larger values later on. The x-axis is also log-scaled so that we can more readily see how the curve converges over time.
+
+![](./images/emissions_lifetime.png)  
+_Total OCEAN released to DF — first 20 years_
+
+## Example APYs
+
+The plot below shows estimated APY over time. Green includes both passive and active rewards; black is just passive rewards. As of DF29, wash consume is no longer profitable, so we should expect a large drop in DCV and therefore in active rewards. So passive rewards (black) provides a great baseline with upside in active rewards (green).
+
+APYs are an estimate because APY depends on OCEAN locked. OCEAN locked for future weeks is not known precisely; it must be estimated. The yellow line is the model for OCEAN locked. We modeled OCEAN locked by observing linear growth from week 5 (when OCEAN locking was introduced) to week 28 (now): OCEAN locked grew from 7.89M OCEAN to 34.98M OCEAN respectively, or 1.177M more OCEAN locked per week.
+
+![](./images/example_apys.png)  
+_Green: estimated APYs (passive + active). Black: estimated APYs (just passive). Yellow: estimated staking_
+The plots are calculated from [this Google Sheet](https://docs.google.com/spreadsheets/d/1F4o7PbV45yW1aPWOJ2rwZEKkgJXbIk5Yq7tj8749drc/edit#gid=1051477754).
+
+OCEAN lock time affects APY. The numbers above assume that all locked OCEAN is locked for 4 years, so that 1 OCEAN → 1 veOCEAN. But APY could be much worse or more if you lock for shorter durations. Here are approximate bounds.
+
+If you lock for 4 years, and everyone else locks for 2, then multiply expected APY by 2. If you lock for 4 years and others for 1, then multiply by 4.
+Conversely, if you lock for 2 years and everyone else for 4, then divide your expected APY by 2. If you lock for 1 year and others for 4, then divide by 4.
+The numbers assume that you’re actively allocating veOCEAN allocation towards high-DCV data assets. For passive locking or low-DCV data assets, divide APY by 2 (approximate).

veocean-data-farming/veocean.md

@@ -0,0 +1,109 @@
+---
+description: An overview of the governance token, veOCEAN (vote-escrowed).
+---
+# veOCEAN
+
+veOCEAN is a mechanism to align near-term incentives (maximize APY) with long-term incentives (long-term locking). It's a fork of veCRV contracts which have been battle-tested over years.
+
+The amount of reward depends on how long the tokens are locked for. You must lock up your OCEAN into the vault for to obtain veOCEAN. Going forward, veOCEAN will be the main mechanism for staking OCEAN, and for curation of datasets.
+
+After creating your lock you will be credited veOCEAN. We sometimes refer to veOCEAN as your “voting power”.
+
+**WARNING:** You will not be able to retrieve your original OCEAN deposit until the lock ends.
+
+## What can I do with veOCEAN?
+
+veOCEAN allows you to engage with different protocol mechanisms and benefit from the reward programs available.
+
+There are 4 things you can do with veOCEAN.
+1. **Hold it** veOCEAN pays **Passive Rewards** every week.
+2. **Allocate it** veOCEAN pays **Active Rewards** every week to the top performing Datasets, Algorithms, dApps, and more.
+3. **Delegate it** You can delegate veOCEAN to other Data Farmers who can curate Datasets for you. In return for their services, these farmers may charge you a fee for helping you receive APY on **Active Rewards**. The Delegate feature has just been recently released and enables veOCEAN holders to more easily access Active Rewards.
+4. **2x Stake** If you are a publisher, allocating veOCEAN to your own Dataset gives your veOCEAN a 2x Bonus. This is an incentive for publishers to engage with their assets and benefit from from the protocol further.
+
+## What is time locking?
+
+Users can lock their OCEAN for different lengths of time to gain voting power. Our app is configured to lock OCEAN for a minimum of 2 weeks and a maximum of four years for max benefit.
+
+Users that lock their OCEAN for a longer period of time receive more veOCEAN to reflect their conviction in the system.
+
+| Year | Lock Multiplier | veOCEAN |
+| ---- | ----------| ------- |
+| 1    | 0.25x     | 0.25    |
+| 2    | 0.50x      | 0.50     |
+| 3    | 0.75x     | 0.75    |
+| 4    | 1.00x      | 1.00     |
+
+_The Lock Multiplier. Amount of veOCEAN received per OCEAN locked._
+
+If you’ve locked OCEAN for 4 years, you will be unable to retrieve your deposit until this time expires.
+
+After choosing your lock period and locking up your OCEAN into the vault, you will be credited with veOCEAN.
+
+veOCEAN is non-transferable. You can’t sell it or send it to other addresses.
+
+## Linear Decay
+
+Your veOCEAN balance will slowly start declining as soon as you receive it.
+
+veOCEAN balance decreases linearly over time until the Lock End Date. When your lock time has lapsed by 50%, you will have 50% of your original veOCEAN balance.
+
+When your lock time ends your veOCEAN balance will hit 0, and your OCEAN tokens can be withdrawn.
+
+If you lock 1.0 OCEAN for 4 years, you get 1.0 veOCEAN at the start.
+
+| Years Passed | veOCEAN Left |
+| ---- | ---- |
+| 1 year | 0.75 |
+| 2 years | 0.50 |
+| 3 years | 0.25 |
+| 4 years | 0.00 |
+
+At the end of your 4 years, your OCEAN is unlocked.
+
+## Replenishing your veOCEAN
+
+You can choose to update your lock and replenish your veOCEAN balance at any time.
+
+To maximize rewards, participants would need to update their 4-year lock every week in order to maintain their veOCEAN balance as high as possible.
+
+## veOCEAN Earnings
+
+All earnings for veOCEAN holders are claimable in Ethereum mainnet. (Data assets for DF may published in any network where Ocean’s deployed in production: Eth mainnet, Polygon, etc.)
+
+There’s a new DF round every week; in line with this, there’s a new ve distribution “epoch” every week. This affects when you can first claim rewards. Specifically, if you lock OCEAN on day x, you’ll be able to claim rewards on the first ve epoch that begins after day x+7. Put another way, from the time you lock OCEAN, you must wait at least a week, and up to two weeks, to be able to claim rewards. (This behavior is inherited from veCRV. Here’s the code. )
+
+veOCEAN holders have earnings from two sources:
+
+### Earnings from Community Fees
+
+Every transaction in Ocean Market and Ocean backend generates transaction fees, some of which go to the community. 50% of the community fees will go to veOCEAN holders; the rest will go to Ocean community-oriented traction programs.
+
+All earnings here are passive.
+
+### Earnings from Data Farming
+
+veOCEAN holders will each get weekly DF rewards allocation, except a small carveout for any Data Challenge initiatives that may run through DF ops.
+
+**veOCEAN holders can be passive, though they will earn more if active.**
+
+“Being active” means allocating veOCEAN to promising data assets (data NFTs). Then, rewards follow the usual DF formula: DCV * stake. Stake is the amount of veOCEAN allocated to the data asset. There is no liquidity locked inside a datatoken pool. (And this stake is safe: you can’t lose your OCEAN as it is merely locked.)
+
+## Flow of Value
+
+The image below illustrates the flow of value. On the left, at time 0, the staker locks their OCEAN into the veOCEAN contract, and receives veOCEAN. In the middle, the staker receives OCEAN rewards every time there’s revenue to the Ocean Protocol Community (top), and also as part of Data Farming rewards (bottom). On the right, when the lock expires (e.g. 4 years) then the staker is able to move their OCEAN around again.
+
+![](./images/flow_of_value.png)
+_Flow of Value_
+
+The veOCEAN design is in accordance with the Web3 Sustainability Loop, which Ocean uses as its system-level design.
+
+The veOCEAN code was forked from the veCRV code. veCRV parameters will be the starting point. To minimize risk, tweaks will be circumspect.
+
+## Security
+
+[veOCEAN core contracts](https://github.com/oceanprotocol/contracts/tree/main/contracts/ve) use [veCRV contracts](https://curve.readthedocs.io/dao-vecrv.html) with zero changes, on purpose: the veCRV contracts have been battle-tested for two years and have not had security issues. Nearly 500 million USD is locked across all forks of veCRV, with the leading DeFi protocols adopting this standard. veCRV contracts [have been audited by Trail of Bits and Quantstamp](https://github.com/curvefi/curve-dao-contracts#audits-and-security).
+
+We have built [a new contract](https://github.com/oceanprotocol/contracts/blob/main/contracts/ve/veAllocate.sol) for users to point their veOCEAN towards given data assets (“allocate veOCEAN”). These new contracts do not control the veOCEAN core contracts at all. In the event of a breach, the only funds at risk would be the rewards distributed for a single week; and we would be able to redirect future funds to a different contract.
+
+We have an [ongoing bug bounty via Immunefi](https://immunefi.com/bounty/oceanprotocol/) for Ocean software, including veOCEAN and DF components. If you identify an issue, please report it there and get rewarded.