$VELLUM Token & Revenue Accrual

§Purpose of $VELLUM#

$VELLUM is the value-accrual and coordination token of the Vellum Cash protocol. Every conduit settlement pays the 0.35% route fee documented in Fees & Economics — and 70% of that fee is structurally directed back to the token: 50% as distributable revenue, 20% as supply retirement via buyback-and-burn.

The token exists to make protocol usage and token ownership the same economic position: as settlement volume grows, fee flow grows, and the accrual + burn mechanics compound. It also serves as the coordination layer for the network — relayers, stakers, and long-term supporters converge on protocol decisions through staked weight rather than off-chain sentiment.

[ NOTE ]

Holding $VELLUM is never required to use the bridge. The terminal, conduits, and privacy guarantees function identically with or without the token. $VELLUM accrues the protocol's revenue; it does not gate the protocol's function.

Of every 0.35% route fee collected at settlement:

Share	Of Fee	Destination	Mechanism
50%	0.175%	$VELLUM stakers	Weekly epoch distribution in USDC
20%	0.070%	Buyback & burn	Tokens purchased on the open market and burned, reducing circulating supply
20%	0.070%	Active relayer	Paid at Stage 04 egress execution
10%	0.035%	Core team	Protocol development & operations

The 70% holder-directed share is enforced at the settlement layer, not by discretion: accrual and burn are protocol-level dispositions of the fee, not discretionary treasury grants.

Accrual (50%) — fees collect in the sovereign treasury and are distributed to stakers each epoch.

Burn (20%) — the treasury acquires $VELLUM on the open market and sends it to an irrecoverable burn address. The burn is verifiable on-chain; burned supply can never re-enter circulation.

§Staking: Lock $VELLUM → veVELLUM#

To receive the accrual share, $VELLUM is locked into veVELLUM (vote-escrowed VELLUM):

Parameter	Value	Notes
Mechanism	Lock $VELLUM → veVELLUM	Lockup-weighted balance
Accrual Share	50% of route fees	Pro-rata by veVELLUM weight
Distribution Cadence	Weekly epoch claims	Claim whenever, funds accumulate per epoch
Claim Currency	USDC (Arc native)	No exposure to claim-time token price

EpochReward = (veVELLUM(you)) / (veVELLUM(total)) × 0.50 imes Fees(epoch)

Longer locks carry higher veVELLUM weight per token, rewarding committed liquidity over mercenaries.

Claims are paid in USDC on the Arc Blockchain — your revenue share arrives as the same stable, settlement-native currency the protocol itself runs on.

Staking is non-custodial: the lock is a smart-contract position controlled by your wallet, not a deposit with an operator.

§Utility Summary#

Utility	Description
Revenue accrual	Pro-rata claim on 50% of all route fees, paid weekly in USDC
Deflationary sink	20% of all fees are market-bought and burned, forever
Staked governance	veVELLUM weight signals on protocol parameters (tiers, fee routing, treasury)
Relayer bond	Relayer operators stake $VELLUM; misbehavior is slashed (see Relayer Architecture)

§What $VELLUM Is Not#

Not a bridge discount. Route fees are flat and identical for everyone; the token does not reduce them.

Not required for privacy. Shielded settlement, nullifier verification, and heuristic evasion are tokenless functions.

Not a yield promise. Accrual is a proportional share of actual fee flow — it scales with usage and can be zero if usage is zero. No returns are guaranteed.

Not a governance veto. Staked weight signals and coordinates; the non-custodial architecture and fee schedule are anchored at the settlement layer.

§Deployment Status & Contract Address (CA)#

Parameter	Specification
Token Symbol	`$VELLUM`
Contract Address (CA)	`0x9A16c3ded385A247515dEd5381e9c8086DCe80ae`
Network	Arc Mainnet (Chain ID: 50)
Liquidity Pool	Uniswap V2
Status	Live / Active

The official $VELLUM contract is deployed on Arc Mainnet at 0x9A16c3ded385A247515dEd5381e9c8086DCe80ae with primary liquidity provisioned on Uniswap V2. Buy actions across the protocol interface and terminal link directly to the verified Uniswap pool.