Original Article Title: Virgenesis - The Playbook
Original Article Authors: @Defi0xJeff, @steak_studio Lead
Original Article Translation: Rhythm小deep

Editor's Note: The article analyzes the strategy of veVIRTUAL staking and gamified points on the Virtuals platform. The article introduces the latest tokenomics update, emphasizes the alignment of long-term stakers with protocol incentives, and cautions against fully maxing out token locks for liquidity. The author suggests earning 100,000 to 400,000 Virgen points per day, locking 10,000 to 50,000 $VIRTUAL, dynamically responding to market fluctuations, and selectively choosing high-potential projects to maximize returns.

Below is the original content (slightly reorganized for better readability):

This is a short and concise article sharing my thoughts on veVIRTUAL staking and playing the points game.

If you've been active in the Virtuals trenches recently, you may have noticed that the team has just rolled out one of the most significant updates to date:

· Integrated Kaito, introduced a revamped Yapper leaderboard, incentivizing top Yappers and Kaito stakers to earn points.

· Updated the tokenomics, introducing veVIRTUAL (20% of points are now allocated to veVIRTUAL stakers instead of holders).

The change in tokenomics has made the interests of long-term supporters (those willing to lock up $VIRTUAL) more aligned with the protocol (Virtuals and the core team). This new dynamic reminds me of the xGRAIL tokenomics (during the Arb season) and the ve(3,3) tokenomics of Velodrome and Aerodrome when they emerged on OP and Base.

Since 2021, amidst various narratives and waves, I've learned a lesson: in any scenario (especially in a veTokenomics model), fully maxing out your token locks is very unwise.

Why?

Taking a step back, the value of $VIRTUAL comes from transaction fees stemming from activity on its platform. The more projects go live, existing projects innovate continuously and roll out exciting features, the more people eagerly trade on Virtuals.

Next up is the "Virgen Score," which is a must-have for participating in the Genesis Launch, obtained by actively trading on Virtuals, holding/staking Diamond Hand proxy tokens, and holding $VIRTUAL (prior to the latest changes). $BIOS has become the prime example, with this 100x moonshot star continuing to attract builders and traders into the Virgen trench, solidifying the flywheel effect.

The Virgen Score has now been established as the "digital gold," with each score worth between $0.012 and $0.034 (if you earn 100,000 scores per day and assuming you invest scores in a successfully launched project, you can earn $1,200 to $3,400 per day).

Now... why I say maxing out is a bad idea:

· No launchpad can stay hot forever — trends and narratives ebb and flow, influenced by various factors. The Virtuals team has shown they are narrative masters, but facing competition, no one knows how long the current Virtuals wave can last.

· There is a "sufficient" threshold for scores earned per day (per wallet). For example, if you max out 150,000 $VIRTUAL, receiving 150,000 veVIRTUAL, you earn 1.5 to 1.8 million scores per day. Brother, you don't need that many scores.

· There is an implicit cost of liquidity. In one cycle, the token may see a significant surge (or drop). When it surges rapidly and you are unable to take profits, you miss out. Next, the token will drop because nothing lasts forever. All good things come to an end; it's all about whether you can extract the maximum value from it.

Emphasis again — if you look at this chart, you'll find that the return on score spending highly depends on the quality of the projects you invest in, the frenzy surrounding the project (how many scores are being invested), and how high the post-launch FDV (Fully Diluted Valuation) can go. Project selection is crucial in this game. The better your selection, the higher the value you can capture from the scores.

How Much $VIRTUAL Should You Lock? What Is the Strategy?

· Assuming $AXR is the worst-case scenario (requires 4 million scores for full allocation), earning 400,000 scores per day should suffice, lasting one to one and a half weeks. This is equivalent to locking 50,000 $VIRTUAL for two years.

· Assuming $WHIM is the baseline scenario (requires 820,000 scores for full allocation), earning 100,000 scores per day should be enough. This is equivalent to locking 10,000 $VIRTUAL for two years.

The rule of thumb is to earn 100,000 to 400,000 points per day to ensure you have enough points to participate in launches ranging from medium heat to full heat within a week or a week and a half.

Whether you partially max-lock $VIRTUAL or fully mid-lock $VIRTUAL is up to you. But make sure to hold both liquid and illiquid assets concurrently to stay nimble and capture profits as $VIRTUAL continues to rise.

Specific Gameplay

I only max-lock a small portion (5-10%) of $VIRTUAL as veVIRTUAL to ensure enough points are obtained for a full allocation in high-heat launches, while keeping the remaining 95% liquid to capitalize on market rebounds.

Assuming I earn 250,000 points per day and make decent calls on projects, exiting at the right times with each point worth $0.022 = $5,500 per day -> breaking even in just 5 days.

Even in a worst-case scenario where each point is $0.010, equal to $2,750 per day -> breaking even in just 9 days.

I plan to only engage in short-term plays with projects of the highest point value, while exclusively diamond-handling level one projects. The ultimate goal is to accumulate more $VIRTUAL, using the Genesis Launchpad / Virgen points as a venue and mechanism to generate returns for the $VIRTUAL token.

For friends interested in my future picks, check out my latest Substack article "The After Hour EP.2," where I share the analysis of three upcoming projects I plan to invest in.

Make sure you understand what you're doing. Do the math before making decisions. Avoid max-locking all assets due to FOMO; this is the worst decision you can make.

Remember, investing in Virtuals proxies is more like "trading" than investing in tech (at least for now). You are investing in ultra-low-market-cap micro-projects with the potential for massive gains.

Original Article Link: Link to Original

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