Tokens

VAL - Valhalla Token

$VAL token is designed to be used as a medium of exchange. The built-in stability mechanism in the protocol aims to maintain Valhalla's peg to 1 $OS token in the long run.

Note that VAL actively pegs via the algorithm, it does not mean it will be valued at 1 OS all times as it is not collaterized . VAL is not to be confused for a crypto or fiat-backed stablecoin.

VSHARE - Valhalla Shares

Valhalla Shares (VSHARE) are one of the ways to measure the value of the VAL Protocol and shareholder trust in its ability to maintain VAL close to peg. During epoch expansions the protocol mints VAL and distributes it proportionally to all VSHARE holders who have staked their tokens in the Valgrid (boardroom).

VSHARE holders have voting rights (governance) on proposals to improve the protocol and future use cases within the Valhalla Protocol ecosystem.

VSHARE has a maximum total supply of 70000 tokens distributed as follows:

1. Team Allocation: 7000 VSHARE vested linearly over 12 months

2. DAO Allocation: 3000 VSHARE vested linearly over 12 months

3. Remaining 60000 VSHARE are allocated for incentivizing Liquidity Providers in two shares pools for 12 months

VBOND - Valhalla Bonds

VALHALLA Bonds (VBOND) main job is to help incentivize changes in VAL supply during an epoch contraction period. When the TWAP (Time Weighted Average Price) of VAL falls below 1 OS, VBONDs are issued and can be bought with VAL at the current price. Exchanging VAL for VBOND burns VAL tokens, taking them out of circulation (deflation) and helping to get the price back up to 1 OS. These VBOND can be redeemed for VAL when the price is above peg in the future, plus an extra incentive for the longer they are held above peg. This amounts to inflation and sell pressure for VAL when it is above peg, helping to push it back toward 1 OS.

Contrary to early algorithmic protocols, VBONDs do not have expiration dates.

All holders are able to redeem their VBOND for VAL tokens as long as the Treasury has a positive VAL balance, which typically happens when the protocol is in epoch expansion periods.