The BZRX Token Audits and Explainer

We are happy to announce that the manual audits and formal verification of the BZRX and vBZRX tokens are complete. We give our thanks to Certik for doing such a thorough job in both optimizing and securing the contracts. As we mentioned in our original article, The BZRX Token Model v3, all tokens not distributed during the presale are locked inside a vesting contract. The tokens vest over 4 years and a six month cliff.

We tokenized the ownership of the vesting contract so that it could be streamed proportionally to multiple addresses. When vBZRX is in an address, it directs the vesting contract to vest the tokens to that address as per the vesting schedule.

The total supply of BZRX is 1.030B. Currently all but 140MM of the tokens are inside the vesting contract. You can track the number of tokens inside the vesting contract transparently via Etherscan.

The Utility of BZRX

The BZRX token is a governance token, first and foremost. Collectively, the token holders have the power to upgrade the protocol as they see fit, only constrained by the checks-and-balances of the bZxDAO. This allows token holders to create incentives to reward participation and drive usage of the protocol. A number of proposals have been made to capture value and drive participation in governance. These include:

• Fee sharing for participation in governance
• Fee mining incentives for protocol users
• Using the floating liquidity from unclaimed fees to liquidity mine BAL rewards
• Asset backing the token with the insurance fund

These proposals will be voted on by the DAO upon relaunch.

The Structure of vBZRX

The vBZRX token is an ERC20 token, making each token fungible and uniform. The underlying BZRX within the contract can be staked, however voting rights are only counted for the amount of BZRX that is unvested, and this decreases with each block. As currently proposed, it will be possible to participate in fee sharing with the staked BZRX inside the vBZRX contract; however, the fees do not vest until the token vests.

Key Takeaways:

• When BZRX is vesting, any fees it generates vests with the token that generated it.
• vBZRX is only entitled to voting rights to the amount of underlying unvested BZRX.