Gems Epoch 8: Fee Based Rewards Begin & 957,964 $VELVET Up For Grabs
A cleaner system. A stronger economy. Rewards aligned with real usage. Come use the platform that rewards its users
Epoch 7 Recap (January 10 → February 10)
Epoch 7 closed out the year with 968,305 $VELVET distributed to users who stayed active across Velvet through trading, staking, referrals, portfolio creation, and daily Gem claims.
Before Epoch 6 came to an end, we announced a change to how Gems rewards would be distributed. The goal was clear. As Velvet grows, rewards must increasingly reflect who is driving the most value to the ecosystem.
Epoch 8 Is Live (February 10 → March 10)
Epoch 8 of the Velvet Gems Campaign is officially live.
From February 10 through March 10, users will compete for 957,964 $VELVET, distributed at the end of the epoch.
As Velvet continues expanding into new asset types and more advanced trading infrastructure, the Gems system is evolving to ensure rewards are aligned with sustainable activity.
Ranked Gems Rewards Continue
Epoch 8 continues with the rank based rewards model introduced previously.
Instead of spreading rewards evenly across all participants, $VELVET is distributed based on your Gems rank.
Rank 1 receives 5% of the total Gems allocation
Top 10 receive the highest fixed allocations
Ranks beyond Top 10 follow a sliding scale
The remaining active users still receive a share
The higher your rank, the larger your share of the monthly pool.
Why This Change Matters
The ranked system ensures:
Users driving the most value to Velvet earn the most
Rewards scale with real contribution
Incentives remain competitive and performance based
This keeps the ecosystem efficient, merit driven, and aligned with growth.
New in Epoch 8: Gems Are Now Based on Fees Paid
Starting this epoch, Gems are calculated based on fees paid, not TVL.
As Velvet prepares to launch more asset types and expand the trading surface area of the platform, rewards must reflect actual economic contribution, not passive capital placement.
What Changed
Trading fees paid now determine Gem generation instead of Volume calculation
TVL no longer contributes toward Gems
Why This Update Was Needed
Under the previous TVL model, certain users were able to:
Add illiquid or scam tokens to portfolios
Exploit inaccurate pricing data
Artificially inflate TVL
Earn more Gems than they should have
By moving to a fee based system, rewards now reflect:
Real trading activity
Real protocol revenue
Real contribution to the Velvet ecosystem
If you were trading real tokens in previous epochs, your Gem amount on swaps will remain the same.
This makes the system cleaner, harder to game, and better aligned with long term growth.
Core Ways to Compete
Your rank is now shaped by:
Trading activity and fees paid
veVELVET staking alignment
Bringing active users
Maintaining your daily Gem streak
Remember: Gems must be claimed daily. Unclaimed Gems expire and do not count toward rankings.
Key Dates
Activity window: February 10 to March 10, 2026
Distribution: March 10, 2026
Total rewards: 957,964 $VELVET
Epoch 8 Is About Real Alignment
As Velvet expands, incentives evolve.
Fee based Gems ensure that rewards flow to users who actively power the ecosystem, while ranked distribution ensures those contributions are properly weighted.
Trade with purpose.
Stay consistent.
Climb the ranks.
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