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The “Samurai Vault” feature effectively enables Samurai NFT Node holders and xHNR governance token holders to lock up the ERC20 token along with the NFT (ERC 721).
The “Samurai Vault” smart contracts store and retain the provided tokens and NFTs for a pre-determined period of time (also referred to as lockup period) and release an incentive upon the Vault’s maturity period (unlock time).
The incentive comprises of a boosted xHNR governance token reward rate being dispersed at the Vault’s maturity period. The provided incentive upon maturity of the Vault represents a higher APY reward rate than the Samurai Node NFT would produce during the same time period with no lockup in the Vault feature. The total xHNR token allocation issued for the purposes of incentivising Samurai Vaults is to be minted at the maturation of Vaults (22 100 000 xHNR tokens in total).
Furthermore, upon depositing to Samurai’s Vault, a vexHNR token, representative of the depositor’s share in the Samurai Vault smart contract, becomes instantly claimable. Similarly to the mechanics and implementations of veCRV (of Curve Finance), the vexHNR (voting escrow xHNR) comprises of a non-transferrable, non-tradeable token, representing an extended weighting in governance voting of 1.5. The vexHNR token is only usable until the maturity of the Samurai Vault and is blacklisted (non-usable) right after the maturity of the specific Vault. The claimable vexHNR token allocation is determined by: xHNR token deposit * 0.5 * number of NFT nodes.
The vexHNR token has no other utility besides enhanced participation in the protocol’s governance and the only manner in which the vexHNR token can be attained is by contributing to the Samurai Vault smart contract, by locking up Samurai NFT Nodes and the xHNR governance token.
The introduction of Samurai Vault ultimately caters to the protocol’s power users with long-term prospects that currently have limited ability to immerse themselves to the protocol and its governance in such manner, while effectively aligning incentives.
To ensure alignment with the above statement, the participation in Samurai’s Vault contains the following parametric pre-requisites:
A quantity of 100 Samurai NFT Nodes must be deposited (of any tier) AND A quantity of 100 000 xHNR governance tokens must be deposited (These parameters are not mutually exclusive and must be deposited simultaneously to successfully attain a Samurai Vault)
In accordance with the block speed, the lockup period of the Vault is estimated to be approximately 72 months (locked for 170 000 000 blocks).
The total number of Samurai Vault’s is finite and capped at 1300 nodes + 1 300 000 xHNR