VIP Introduction

In an ecosystem with an ever-growing number of rollups, it is crucial to align the incentives of all participants. While there have been attempts to achieve this, most run into a few common core problems:

• Misalignment of incentives for dApps that create high levels of on-chain activity and value
• Economic under-utilization of the native token
• Inefficient distribution of protocol-level grants and incentives to foster long-term value and alignment

For its rollup ecosystem, Initia aims to solve these issues by designing a novel incentive alignment mechanism known as the Vested Interest Program (VIP). The VIP program aims to structurally and programmatically incentivize all actors within the Initia ecosystem to:

• Actively participate in the ecosystem
• Perform high-quality and beneficial activities that positively contribute to the ecosystem
• Remain long-term aligned with the success of Initia

The goal of the VIP program is to align the interests of all participants within the ecosystem, including the rollup teams and ecosystem, the rollup users, and the broader Initia ecosystem.