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6 min read · published 01/10/2025

🥕 $CARROT is Coming! Voting & Rewards for $PUFFER Updated Season 2

🥕 $CARROT is Coming! Voting & Rewards for $PUFFER Updated Season 2

Greetings Puffer community! In this post we’ll be sharing new details around Puffer’s Season 2 update and highlighting the innovative use of tokenizing Puffer Points as CARROT, an ERC-20 token, that powers Puffer’s new decentralized points incentive program. Let’s explore how you can participate, earn CARROT rewards, and contribute to the growth of the Puffer ecosystem.

TL;DR

- ERC-20 Reward Token: CARROT is a claim ticket for future PUFFER tokens.
- Community-Driven Incentives:Gauges allow users to propose and to direct rewards to protocols, and liquidity providers.
- Transparency and Accessibility: Bi-weekly voting and on-chain governance ensure decentralization and trust.

What’s New in the Season 2 Update?

Puffer’s Season 2 update introduces a decentralized, community-driven rewards system, with the CARROT token at its core. This update empowers the community to determine how and where rewards are distributed, driving a fair and transparent sustainable growth model for the Puffer ecosystem.

Pre-CARROT

Stakers who continued staking after the end of Season 1, as part of the start of Season 2 launch will have their Puffer Points calculated from October 5th, 2024 to January 31th, 2025. These points are will be linearly calculated, converted to CARROT, and claimable after Season 2 ends. More details will follow soon.

CARROT Rewards System

The Season 2 update introduces a 100M total supply of on-chain CARROT ERC20 rewards.

- Daily Emissions: CARROT tokens are claimable daily, whenever participation is updated via Merkl. However, once claimed, they are locked with a 30-day cliff before a user can withdraw.
- On-Chain Transparency: Moving rewards on-chain enhances transparency and eliminates points dilution common in traditional off-chain programs.

Voting Gauge

What Are Gauges?

Gauges are tools for distributing rewards to specific protocols or liquidity pools. Community votes determine the allocation of rewards to each gauge, creating a fair and democratic system.

Why Use Gauges?

If you’re contributing to the Puffer ecosystem — providing liquidity or building integrations — gauges allow you to receive rewards based on community support. This system ensures recognition and funding for valuable contributions.

Voting Epochs

Voting Epoch is the start time for all voting, including proposals and gauges. Puffer’s voting Epochs are Bi-weekly voting and allow PUFFER stakers to decide how to reward allocations.

Voting Power Cutoff Time/Warm-up Period

Cutoff time for staking so that the vePUFFER becomes active by the voting epoch. This is due to the Warm-up Period: where PUFFER must be staked at least 72 hours before the voting epoch starts on designated Thursdays at 11:59:59 PM UTC. If you stake after this cutoff time, your vePUFFER will not be active until after the next Epoch.

Reward Epochs

Reward epochs go live shortly after each round of Voting Epoch ends. Once the voting round has concluded, the CARROT rewards claim period is ongoing and can be claimed at any time.

- Once a user claims their rewards, these CARROT tokens will be subjected to a 30-day cliff.
- Each claim executed by a user will initiate a 30-day cliff.
- Users will be able to claim rewards up until a year after Season 2 starts.

Key Dates

Governance Calendar | Puffer Docs Overviewdocs.puffer.fi https://docs.puffer.fi/governance/calendar

*NB: vePUFFER (Voting Power) does not become active immediately upon staking, your vePUFFER only becomes active at the first Thursday at 00:00:00 UTC where the vePUFFER is at least three (3) days old due to the warmup period parameter.

Real-Life Use Case: Cutoff Time for Staking

Alice wants to participate in the upcoming voting epoch and needs to stake her PUFFER tokens to obtain vePUFFER, which grants her voting power. To be eligible, Alice must stake her tokens in time for her vePUFFER to become active, following the 72-hour warm-up period requirement (see vePUFFER parameters)

Here’s how her staking timeline unfolds:

Scenario 1: Alice Misses the Cutoff

- There is an upcoming voting epoch scheduled to start on Thursday, January 16, 2025, at 12:00 AM UTC.
- Alice stakes her PUFFER tokens on Monday, January 13, 2025, at 12:00 AM UTC.
- Her vePUFFER will not complete the 72-hour warm-up period by Thursday at 12:00 AM UTC and therefore won’t be active in time for this voting epoch.
- As a result, Alice’s vePUFFER, will only be eligible for the next voting epoch, starting on Thursday, January 30, 2025, at 12:00 AM UTC.

Scenario 2: Alice Meets the Cutoff

- The same voting epoch is scheduled to start on Thursday, January 16, 2025, at 12:00 AM UTC
- This time, Alice stakes her PUFFER tokens earlier, on Sunday, January 12, 2025, at 11:59 PM UTC.
- By the time the voting epoch begins on Thursday, her vePUFFER will have completed the 72-hour warm-up period and become active.
- Alice’s vePUFFER will be eligible to participate in the January 16, 2025, voting epoch.

By understanding the warm-up period and planning her staking accordingly, Alice ensures her vePUFFER is active and ready to participate in governance.

Real-Life Use Case: How CARROT Rewards Work

Let’s say Alice wants to participate in the upcoming voting epoch and stake her PUFFER tokens to earn CARROT rewards. To be eligible, Alice must stake her PUFFER tokens at least 72 hours before the voting epoch starts on Thursday at 12:00 AM UTC, Alice needs to stake her tokens by Monday at 12:00 AM UTC.

Here’s how her participation unfolds:

1. Staking and Conversion: Alice stakes 10,000 PUFFER tokens by Monday, completing the warm-up period by Thursday. Her staked tokens are converted into vePUFFER, granting her voting power.
2. Voting Epoch:During the voting epoch, Alice directs 50% of her votes to the pufETH/WETH liquidity pool (where she has provided liquidity) and 50% to a protocol integration gauge.
3. Voting Outcome: At the end of the epoch:

- The pufETH/WETH pool receives 30% of all votes.
- The protocol integration gauge secures 20% of votes.

4.Rewards Distribution: If 1M CARROT tokens are distributed during that epoch:

- The pufETH/WETH pool receives 300K tokens.
- The protocol integration gauge receives 200K tokens.

5. Rewards Epoch:During the Rewards epoch, based on Alice’s liquidity provisions in the pufETH/WETH pool, Alice earns a proportionate share of the 300K CARROT tokens rewards.

- Once the Rewards Epoch claims open, Alice will be eligible to claim her CARROT tokens at any point up until the end of Season 2.

We will be releasing a detailed FAQs blog post to cover questions before the launch of the Season 2 update.

Join the Puffer Ecosystem Today

Season 2 is your opportunity to shape the future of Puffer. Whether you’re a holder, provider, or protocol, your voice matters. Lock your PUFFER, participate in governance, and earn rewards as we build a truly decentralized ecosystem.

Visit Puffer Governance to get started.