How It Works

Token Overview

Incentive Design

Operating Model

Token Emissions

Voting on Emissions

Flywheel

Market Dynamics

Real World Use Case

FAQs

Appendix

⏎ Return to start

This section defines the mechanisms that translate staking, voting, and performance into incentive allocation. Emission levels and monetary parameters are defined separately.

Vote-Escrow Model

Combinder adapts the vote-escrow model from decentralized finance protocols like Curve and Aerodrome to energy markets.

Key difference: Instead of coordinating the capital allocation with the help of liquidity pools, Combinder coordinates flexibility allocation using flexibility pools (‘flex pools’) with fixed weekly capacity requirements.

<aside>

What’s a vote-escrow model?

‘VE’ models align long-term commitment of users with governance power and rewards. Participants lock tokens for a defined period and receive voting weight proportional to the amount and duration of the lock.

Voting directs incentive allocation across the system, to steer the network towards the most beneficial outcome.

</aside>

Gauge Structure

Each gauge combines device type with geographic location, ensuring that rewards align with the value contributed by specific zones and equipment types. This structure is essential for Combinder's regional network focus, as electricity markets operate with distinct regional characteristics and regulatory frameworks.

By organizing gauges around both device type (EV chargers, batteries, solar panels, smart appliances) and location (Berlin, Madrid, Paris, etc.), we create targeted incentive pools that:

• Match emissions to actual market opportunities in each region
• Recognize different device capabilities and value propositions
• Adapt to local electricity market conditions and pricing structures
• Enable Flex Pools to optimize for regional demand patterns

This dual-axis approach ensures the protocol scales effectively across diverse markets while maintaining alignment between token incentives and real-world energy value.

Reputation System

A unified score serves dual purposes: qualifying for Tier 2 participation and determining emission distribution within your Flex Pool. The mechanism is oriented towards the S2 Standard, an open “communication standard for energy flexibility in homes and buildings”.

Score Components: Score = (A × R × C × E × D) × S

Where A = Availability, R = Response Time, C = Energy Capacity, E = Efficiency, D = Data Quality, S = Scaling Factor

Scores are weighted over 12 weeks, with recent performance counting more. Week N = 20%, Week N-1 = 15%, declining to 2.5% for weeks N-9 through N-12.

Recovery is possible. The weighted system lets you bounce from 50 to 80 in about a month with consistent good performance.

Staking $VGRD

$VGRD can be locked to receive veVGRD, which provides voting power and revenue participation.

veVGRD is transferable, decays linearly until unlock and determines weekly emission allocation

← Previous: Token Overview

Next: Operating Model →