DRAFT FOR COMMUNITY DISCUSSION
This draft presents the concept and multiple parameter options for community feedback. The final on-chain proposal will include specific locked-in parameters (threshold and weight calculation) based on community consensus from this discussion phase.In addition, this proposal is built with the VeBetterDAO Community Execution Framework in mind so will not be published for support until the framework is fully implemented.
Proposal Summary
This proposal extends endorsement capability to Galaxy Member NFT holders, creating a more accessible and inclusive path for community members to support X2Earn applications while maintaining strong economic security and preventing manipulation.
Proposal Type
On-chain Action (pending parameter selection)
☐ Text-only Proposal
Current Situation
Today, only VeChain node holders can endorse X2Earn applications for inclusion in allocation voting rounds. While this system has served the ecosystem well, it creates a significant barrier to participation:
Node holders possess considerable endorsement power but represent a limited group. Node ownership requires substantial capital investment (ranging from approximately $10,000 to $100,000+ depending on node type), making direct endorsement participation inaccessible to most community members.
Galaxy Member NFT holders, by contrast, represent a growing segment of the VeBetterDAO community. These NFTs provide additional voting rewards but currently offer no endorsement capability. A Moon-level Galaxy Member NFT costs just 5,000 B3TR to obtain, yet holders cannot directly support applications they believe in through endorsement.
This creates an imbalance: community members who actively participate in voting and governance, who hold Galaxy Member NFTs specifically to engage more deeply with VeBetterDAO, cannot help new applications reach the 100-point endorsement threshold required for allocation eligibility.
The result is a bottleneck. Promising applications sometimes struggle to secure enough node-based endorsements, not because they lack community support, but because the pool of potential endorsers is limited to node holders only.
The Utilization Problem
The endorsement bottleneck is not just about the size of the endorser pool, it’s also about engagement. Current on-chain data shows (as of April 21st 2026):
- Theoretical Stargate capacity: 43,273 endorsement points (from 4,294 nodes)
- Actual utilization: 5,371 points actively used
- Utilization rate: 12.4%
This means 87.6% of existing endorsement capacity sits idle. Node holders, while possessing significant endorsement power, are often not actively engaged in VeBetterDAO governance or may not be aware of the endorsement system.
This proposal does not directly solve the utilization problem, but addresses it indirectly by:
- Attracting more engaged capital: GM NFT holders are VeBetterDAO-native participants who have already demonstrated engagement through governance voting
- Creating upgrade incentives: New endorsement utility provides concrete reasons for holders to invest in higher-tier GM NFTs
- Diversifying the endorser pool: More potential endorsers means less dependency on any single group’s engagement level
The Opportunity
Galaxy Member NFTs represent measurable B3TR investment. The cumulative cost to reach higher Galaxy Member levels ranges from 5,000 B3TR (Moon) to over 16 million B3TR (Galaxy).
Galaxy Member NFT holders have demonstrated alignment with VeBetterDAO through both capital investment and ongoing participation in governance voting.
By extending endorsement capability to Galaxy Member NFT holders, we can:
- Democratize application support - Community members who believe in an application can directly contribute to its endorsement.
- Accelerate ecosystem growth - More endorsers means faster paths to eligibility for quality applications.
- Reward sustained participation - Galaxy Member NFTs become more valuable, incentivizing deeper ecosystem engagement.
- Maintain economic security - Through carefully calibrated point allocations and threshold adjustments.
The challenge is doing this without introducing vulnerability to manipulation or diminishing the value of node-based endorsements.
Proposal
I propose a comprehensive evolution of the endorsement system that achieves four key objectives:
1. Enable Galaxy Member NFT Endorsement
Eligibility: Galaxy Member NFTs at Moon level (Level 2) and above can endorse X2Earn applications.
Why Moon and above? This threshold requires a minimum 5,000 B3TR investment, establishing meaningful economic commitment while remaining accessible to broad community participation. It also aligns with the existing eligibility requirement for the GM Rewards Pool.
2. Fair and Proportional Point Allocation
Endorsement points are allocated proportionally to the cumulative B3TR investment in each Galaxy Member NFT using a linear formula that ensures smooth scaling.
Weight Calculation Formula:
Endorsement Points = FLOOR(Cumulative B3TR Investment / Divisor)
Where the divisor determines how much B3TR investment equals one endorsement point.
Key Properties:
- Linear scaling: Fixed B3TR cost per endorsement point
- No gaming advantage: Upgrading costs the same B3TR per point as buying multiple lower-tier NFTs
- Integer points: All GM NFT levels receive whole-number point values
- Fixed across thresholds: GM points stay constant regardless of system threshold choice
Parameter Options Under Discussion:
The community must choose a divisor (B3TR cost per point) that balances GM NFT utility with economic security. Options analyzed:
| Divisor | Moon Points | Jupiter Points | Total Capacity | Notes |
|---|---|---|---|---|
| 2,000 | 2 | 108 | 2,799 pts | Higher capacity, same efficiency as 2,500 |
| 2,500 | 2 | 87 | 2,503 pts | Recommended - balanced utility |
| 3,000 | 1 | 72 | 1,650 pts | Moon drops to 1 point, lower capacity |
| 5,000 | 1 | 43 | 1,211 pts | Very conservative, minimal GM utility |
Recommendation: Divisor 2,500 provides clean numbers (Moon = 2 pts, Jupiter = 87 pts) with balanced capacity and efficiency relative to Stargate nodes.
Detailed analysis of all divisor options, efficiency comparisons, and Sybil resistance calculations available in the calculation spreadsheet.
3. Maintain Node Endorsement Power Through Proportional Scaling
To preserve the relative influence of VeChain node holders, node endorsement points are scaled proportionally with the chosen threshold.
How Node Scaling Works:
Stargate node points are multiplied by the same factor as the threshold increase. If threshold increases from 100 → 2,000 (20x), all node points scale 20x.
Example with 20x scaling (threshold 2,000):
- Strength: 2 → 40 points
- MjolnirX: 100 → 2,000 points
- All tiers scaled proportionally
This scaling ensures that node holders maintain their established relative influence. A MjolnirX node remains as powerful relative to the threshold as it is today.
Complete node point allocations for all threshold options available in the calculation spreadsheet.
4. Increase Endorsement Threshold for Security
To accommodate the increased endorsement liquidity while preventing manipulation, the endorsement threshold must increase proportionally with the addition of GM NFT endorsers.
Threshold Options Under Discussion:
The community must choose a threshold that maintains economic security while enabling practical GM NFT utility:
| Threshold | Stargate $/pt | Moon Points | Moons to Endorse 1 App | GM Efficiency vs Stargate | Notes |
|---|---|---|---|---|---|
| 100 | $1,487 | 2 | 50 | 0.018x (55x more efficient) | Today’s baseline, GM very efficient |
| 1,000 | $149 | 2 | 500 | 0.183x (5.5x more efficient) | Lower barrier, GM still efficient |
| 2,000 | $74 | 2 | 1,000 | 0.367x (2.7x more efficient) | Recommended - balanced |
| 5,000 | $30 | 2 | 2,500 | 0.916x (near parity) | Future-proof, minimal current utility |
Recommendation: Threshold 2,000 balances practical GM NFT utility (1,000 Moons OR 23 Jupiters to endorse one app) with economic security and efficiency relative to Stargate nodes.
The corresponding system caps adjust proportionally:
- Per-endorser-per-app cap: 49% of threshold (e.g., 980 pts at threshold 2,000)
- Total per-app cap: 110% of threshold (e.g., 2,200 pts at threshold 2,000)
These caps ensure no single entity can unilaterally endorse an application.
Detailed threshold impact analysis, Sybil cost calculations, and cross-scenario comparisons available in the calculation spreadsheet.
Node-Attached Galaxy Member NFTs
Galaxy Member NFTs can be upgraded through two mechanisms:
- Paid upgrades: Holder invests B3TR to upgrade the NFT level
- Node attachment: Attaching a VeChain node grants free level upgrades based on node tier
To prevent double-counting endorsement power, only paid Galaxy Member NFT upgrades count toward endorsement points. Node-attached Galaxy Member NFTs cannot use their Galaxy Member endorsement capability - they must endorse through their attached node instead.
Example scenarios:
- Paid Moon NFT (5,000 B3TR invested): Can endorse with 2 GM points
- Moon NFT with Strength node attached (0 B3TR invested, free upgrade): Can only endorse using the Strength node’s 40 points, NOT GM points
- Paid Jupiter NFT (217,500 B3TR invested) with node attached: Can detach node to endorse with 87 GM points, OR keep node attached and endorse with node points only
This ensures endorsement power accurately reflects actual B3TR investment rather than free upgrades from node attachment.
Economic Security Analysis
A key concern with expanding endorsement access is the risk of Sybil attacks: could malicious actors cheaply acquire multiple Galaxy Member NFTs to manipulate application endorsements?
The proposed weighting system eliminates this attack vector through economic rationality:
Attack Economics
To reach the 2,000-point threshold using only Moon NFTs (the cheapest option):
- NFTs required: 1,000 Moon NFTs
- Total B3TR cost: 5,000,000 B3TR
- USD cost at current prices: $50,000+
This is economically irrational because:
-
Fragmentation provides no advantage: The linear formula ensures one Jupiter NFT (217,500 B3TR, 87 points) is always more capital-efficient than 43 Moon NFTs attempting to reach the same point total.
-
Attack cost exceeds legitimate participation: The same capital could purchase higher-tier GM NFTs or participate through existing node channels more efficiently.
-
Endorsement still requires coalition: Even with 1,000 cheap NFTs, an attacker can only endorse one application fully. The system requires genuine community support across multiple holders.
Detailed Sybil analysis, cost breakdowns across B3TR price scenarios, and efficiency comparisons available in the calculation spreadsheet.
Efficiency Comparison (Example: Threshold 2,000 + Divisor 2,500)
At current B3TR prices ($0.0109):
- GM NFTs: $27.25 per endorsement point
- Stargate nodes: $74.35 per point
- GM NFTs are 2.7x more efficient than nodes
This efficiency changes with B3TR price:
- Conservative prices ($0.10 B3TR): GM NFTs become less efficient (~$250/pt vs $74/pt)
- ATH prices ($0.50 B3TR): GM NFTs much less efficient (~$1,250/pt vs $74/pt)
The linear weight calculation ensures GM NFTs provide meaningful utility at current prices while naturally becoming less competitive with nodes as B3TR value appreciates.
Full efficiency analysis across all parameter combinations and price scenarios in the calculation spreadsheet.
Parameter Selection Process
What the community needs to decide:
-
Weight Calculation (Divisor): How much B3TR investment = 1 endorsement point?
→ Recommended: 2,500 B3TR per point -
Endorsement Threshold: How many points does an app need to be eligible?
→ Recommended: 2,000 points
These two parameters are interdependent. The threshold determines Stargate node efficiency, which affects how competitive GM NFTs are relative to nodes.
Recommended Configuration: Threshold 2,000 + Divisor 2,500
- Balanced efficiency (GM NFTs ~37% of Stargate cost per point at current B3TR prices)
- Practical utility (1,000 Moons OR 23 Jupiters to endorse 1 app)
- Price resilient (efficiency ratio adjusts naturally as B3TR price changes)
- Clean numbers (Moon = 2 pts, Jupiter = 87 pts)
Comprehensive analysis in the calculation spreadsheet includes:
- Full decision matrix (all threshold × divisor combinations)
- Sybil attack cost analysis across B3TR price scenarios
- Efficiency comparisons (GM NFTs vs Stargate nodes)
- Practical utility metrics (how many NFTs needed to endorse apps)
- Alternative configurations with pros/cons
This draft is open for community discussion. The final proposal will specify locked-in parameters based on community consensus.
Implementation Approach
Technical Changes Required
This proposal requires an upgrade to the X2EarnApps contract (V8 → V9) to:
- Add Galaxy Member NFT endorsement functions parallel to existing node endorsement logic
- Implement cumulative B3TR calculation for Galaxy Member NFT point allocation
- Add validation to prevent node-attached Galaxy Member NFTs from endorsing via Galaxy Member capability
- Update endorsement threshold from 100 to 2,000 points
- Scale all existing node endorsements by 20x during migration
- Adjust endorsement caps to 980/2,200 points
Migration Strategy
All existing node-based endorsements will be scaled by 20x during the V9 upgrade:
Example Migration:
- Pre-upgrade: Application has Thunder (13) + Mjolnir (50) + ThunderX (35) = 98 points (not eligible)
- Post-upgrade: Application has Thunder (260) + Mjolnir (1,000) + ThunderX (700) = 1,960 points (still not eligible, now needs 40 more points)
This maintains the relative standing of all applications. Those close to the threshold before the upgrade remain close after; those well above remain well above.
Maximum Implementation Budget
Development and testing: 100,000 B3TR
This budget covers:
- Smart contract development (V9 upgrade)
- Frontend updates
- Comprehensive testing suite (mixed endorsements, migration)
- Deployment and verification
- Documentation updates
Ideal Development Timeline
- Phase 1: <=8 weeks smart contract and frontend development
- Phase 2: <=4 weeks testing / integrations
- Total estimated duration: 12 weeks from governance approval
Benefits
- Accessible Participation - Galaxy Member NFT holders gain meaningful influence over ecosystem growth without requiring node-level capital investment.
- Faster Application Onboarding - More potential endorsers means quality applications can reach eligibility threshold more quickly.
- Increased Galaxy Member NFT Value - Additional utility beyond voting rewards strengthens the value proposition for Galaxy Member NFT ownership and upgrades.
- Maintained Economic Security - The 2,000-point threshold and proportional weighting prevent manipulation while enabling genuine community support.
- Fair Weighting - Linear cost-to-points relationship ensures no gaming advantage regardless of how investment is structured.
- Preserved Node Influence - 20x scaling maintains the established relative power of VeChain node holders.
- Coalition Building - Applications must secure support from multiple participants rather than single large endorsers, fostering genuine community backing.
Considerations and Risks
Risk: Increased endorsement complexity
Context: Adding Galaxy Member NFTs as an endorsement source increases the complexity of tracking and validating endorsements.
Mitigation: The implementation follows the same architectural patterns as existing node endorsements. Galaxy Member NFT validation uses the same core mechanisms (token ownership verification, point tracking, cooldown periods) already proven in production.
Risk: Vote manipulation to acquire cheap endorsement
Context: Could actors attempt to manipulate voting outcomes to earn B3TR, then convert that to Galaxy Member NFT endorsements?
Counter-point: This risk exists today with nodes and will not be meaningfully increased. Vote manipulation requires capital, is trackable on-chain, and carries governance consequences. The endorsement system already assumes that participants have legitimate economic stake in the ecosystem’s success.
Risk: Diminishing node holder influence
Context: Will node holders lose relative influence with more endorsers in the system?
Counter-point: The 20x scaling explicitly preserves node holders’ proportional influence. A MjolnirX node at 2,000 points remains as powerful relative to the threshold as it was at 100 points. What changes is ecosystem health: more applications can reach endorsement, benefiting all participants including node holders.
What Changes
Added
- Galaxy Member NFT Endorsement - Moon-level (Level 2) and above Galaxy Member NFTs can endorse X2Earn applications.
- Point Formula -
Points = FLOOR(Cumulative B3TR / divisor)for Galaxy Member NFT endorsements. - Node-Attached Restriction - Galaxy Member NFTs with attached nodes cannot use Galaxy Member endorsement capability.
Modified
- Endorsement Threshold - Increased from 100 to 2,000 points.
- Node Endorsement Points - All scaled 20x (e.g., Strength 2→40, MjolnirX 100→2,000).
- Endorsement Caps - Per-endorser-per-app cap raised to 980 points; total per-app cap raised to 2,200 points.
- Contract Version - X2EarnApps upgraded from V8 to V9.
- Frontend UI/UX - The VBD Governance App updated to support the endorsement flow for GM NFT Holders
Removed
Nothing is removed. All existing functionality remains; this proposal exclusively adds capability.
Next Steps
Community Discussion Phase:
- Review this draft proposal and the calculation spreadsheet
- Discuss preferred parameter combinations (threshold + divisor)
- Provide feedback on implementation approach and risks
- Reach consensus on final configuration
Final Proposal Submission:
Once community consensus is reached, the final on-chain proposal will specify:
- Locked-in threshold value
- Locked-in weight calculation divisor
- Complete technical implementation plan
- Migration strategy with grace period details
Implementation Timeline (if approved):
- Phase 1: ≤8 weeks smart contract and frontend development
- Phase 2: ≤4 weeks testing and integration
- Total: ~12 weeks from governance approval to deployment
Conclusion
This proposal addresses a clear gap: Galaxy Member NFT holders currently lack any mechanism to support applications through endorsement despite demonstrating commitment through B3TR investment and governance participation.
The proposed solution is economically sound and technically straightforward. By scaling both the threshold and node endorsements proportionally while introducing GM NFT endorsements through a linear weight calculation, we expand participation without compromising security or diminishing existing stakeholder influence.
The parameter options presented (threshold 2,000 + divisor 2,500 recommended) balance immediate utility with long-term economic security. Community feedback during this discussion phase will determine the final configuration for on-chain voting.
References
Technical Calculations and Analysis: Google Sheets - GM NFT Endorsement Weights