Vinci Protocol is on a mission to decentralize the $VCI token. We believe this is the primary way to secure the protocol and safeguard the interests of this community. Decentralized Token Distribution helps create no single point of failure and therefore can only enact changes unless the majority of the community agrees, significantly decreasing the likelihood of a system attack and the possibility of corruption.
The VCI token is the driving force that will facilitate the Vinci Protocol. It serves as both a governance token and a utility token with the following (but not limited to) functions:
- Incentives: VCI plays the role of rewards for both lenders and borrowers.
- Governance: VCI token holders can create and vote on proposals. Token holders are able to vote for the protocol upgrades and ecosystem parameter changes.
- Staking to share protocol fees: All VCI holders can stake VCI tokens to the Vinci Vault to share the income generated by the Vinci protocol.
- Supplying Vinci Insurance Vault: VCI tokens in the reserve will be supplied to the Vinci Insurance Vault, to prevent insolvency by unprofitable liquidations and smart contract hacks.