New way to earn from Virtuals online, how to stake veVIRTUAL for maximum returns?

Original Title: Virgenesis - The Playbook

Original authors: @Defi 0x Jeff, Head of @steak_studio

Original translation: Rhythm small deep

Editor’s note: The article analyzes the strategy of veVIRTUAL staking and points game on the Virtuals platform. It introduces the latest tokenomics updates, emphasizing alignment of long-term stakers with protocol interests, and reminds not to fully lock up tokens to maintain liquidity. The author suggests earning 100,000 to 400,000 Virgen points daily, locking 10,000 to 50,000 $VIRTUAL, to flexibly respond to market fluctuations while carefully selecting high-potential projects to maximize returns.

The following is the original content (reorganized for easier reading and understanding):

This is a brief and concise article sharing my thoughts on veVIRTUAL staking and how to navigate the points game.

If you have been active in the trenches of Virtuals recently, you may have noticed that the team has just launched one of the most significant updates ever:

• Integrated with Kaito, launched a comprehensive Yapper leaderboard to incentivize top Yappers and Kaito stakers to earn points.
• Updated the tokenomics, introducing veVIRTUAL (20% of the points are now allocated to veVIRTUAL stakers instead of holders).

The changes in token economics have aligned the interests of long-term supporters (those willing to lock $VIRTUAL) more closely with those of the protocol (Virtuals and the proxy team). This new dynamic reminds me of the xGRAIL token economics (during the Arb season), as well as the ve( 3, 3) token economics when Velodrome and Aerodrome emerged on OP and Base.

Since 2021, I have been navigating through various narratives and trends, and one lesson I have learned is that it is unwise to lock up all your tokens to the maximum extent in any situation (especially in the veTokenomics model).

Why?

Looking at it from a different angle, the value of $VIRTUAL comes from transaction fees, which are derived from trading activities on its platform. The more projects that are launched and the more existing projects innovate and release exciting features, the more people will be excited to trade on Virtuals.

Next is "Virgen Points", which are essential for participating in the Genesis launch. They can be earned by actively trading on Virtuals, holding/diamond-handing proxy tokens, and holding $VIRTUAL (before the latest changes). $BIOS has become the number one case, with this hundred-fold rising star continuously attracting builders and traders into the Virgen trenches, solidifying the flywheel effect.

Virgen points have now been established as "digital gold," with each point valued between 0.012 USD and 0.034 USD (if you earn 100,000 points daily, assuming you successfully invest your points in launched projects, you can earn between 1200 USD and 3400 USD daily).

Now... the reason I say that the maximum lockup is a bad idea is as follows:

• No launch platform can stay hot forever—fads and narratives rise and fall like waves, influenced by various factors. The Virtuals team has shown that they are masters of narrative, but in the face of competition, no one knows how long the current wave of Virtuals can last.
• The points earned each day have a "sufficient" threshold (per wallet). For example, if you lock a maximum of 150,000 $VIRTUAL, you will receive 150,000 veVIRTUAL, earning between 1.5 million to 1.8 million points daily. Bro, you don't need that many points.
• There are hidden liquidity costs. During a cycle, the token may rise (or fall) significantly. When it is skyrocketing, if you don't have the ability to take profits, you won't realize any gains. Next, the token will drop because nothing is eternal. All good things must come to an end, and the key is whether you can extract the maximum value from it.

Once again, it is emphasized—if you look at this table, you will find that the returns on point expenditures are highly dependent on the quality of the projects you invest in, the hype surrounding the projects (how many points are being invested), and how high the FDV (Fully Diluted Valuation) can rise after launch. Project selection is crucial in this game. The better you choose, the higher the value you can capture from the points.

How much $VIRTUAL should be locked? What is the strategy?

• Assuming $AXR is the worst case (requiring 4 million points for full allocation), earning 400,000 points per day for a week to a week and a half should be sufficient. This is equivalent to locking 50,000 $VIRTUAL for two years.
• Assuming $WHIM is the baseline scenario (requiring 820,000 points for full allocation), earning 100,000 points per day should be sufficient. This equates to locking 10,000 $VIRTUAL for two years.

The rule of thumb is to earn 100,000 to 400,000 points daily to ensure there are enough points to participate in launches ranging from medium to maximum popularity within a week or a week and a half.

It depends on whether you want to lock a portion of $VIRTUAL or all of it for the medium term. However, make sure to hold both liquid and illiquid assets to maintain flexibility and realize profits as $VIRTUAL continues to rise.

Specific Gameplay

I only lock a small portion (5-10%) of $VIRTUAL as veVIRTUAL to ensure I have enough points for a full allocation of high-demand launches, while keeping the remaining 95% liquid to realize profits when the market recovers.

I can break even in just 5 days.

just 9 days to break even.

I plan to select only the projects with the best value for points for short-term operations, while only holding onto first-level projects. The ultimate goal is to accumulate more $VIRTUAL, viewing the Genesis launch platform / Virgen points as a place and mechanism for generating profits from $VIRTUAL tokens.

Friends who are interested in my future choices can check out my latest Substack article "The After Hour EP.2", where I share an analysis of three projects I am about to invest in.

Make sure you know what you are doing. Calculate your accounts before making decisions. Don't lock up all your assets due to FOMO; that's the worst decision.

Please remember that investing in Virtuals agents is more like "trading" rather than investing in technology (at least for now), as you are investing in micro-projects with very low market value that have the potential for explosive growth.

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