<Sichuan Pepper Unpacking | Cabal>Issue 12 @ initia @ CabalVIP One sentence definition: Cabal is a governance and liquidity protocol specifically designed for VIPs in the Initia ecosystem, which utilizes liquidity staking and bribery market mechanisms Tldr 1. If users want to earn more interest by exchanging their initial data for xINIT, they need to switch to sxINIT (LST), which provides a visual experience of shadow/xshadow/x33. For the Rollup project team, would they like to receive additional subsidies from the VIP system of the Initia headquarters? We have to give Cabal users money (bribes), whoever gives more, Cabal will help them vote for subsidies 2. Basically, users revolve around ->buying Initiat ->saving Cabal for xINIT ->throwing it into the Initiat-USDC pool of InitiaDEX to earn transaction fees; For higher end products, replace xNIT with sxNIT ->Watch the bribery market ->Invest in whoever gives the airdrop [Core Function Disassembly] 1. Liquid Staking 🌟 Initiate staking: Users stake their Initiata (Initia mainnet token) → obtain xINIT (liquid staking token), which can be freely traded/borrowed, but the original Initiat is locked for 2 years 🌟 LP staking: Deposit InitiaDEX's LP tokens (such as Initiat-ETH) into Cabal → obtain Cabal LP tokens, retain the right to profits while releasing liquidity 2. Bribing Marketplace for Governance Incentives 🌟 Rollup Bribery: L2 Project Direction Cabal Users Pay Initial/Stablecoins → Exchange for Higher Reward Quotas in VIP System 🌟 Users make profits by holding sxNIT (xNIT's enhanced version) or Cabal LP tokens → automatically receiving bribe funds 3. Income enhancement tools 🌟 SxNIT: An upgraded version of xNIT that captures triple compound interest: -Basic pledge income (approximately 5-10% APY) -Bribery dividend (protection fee paid by the project party) -Expected airdrop (Cabal may issue coins to reward early users) -Cost: Withdrawal requires a 21 day unlocking period The user staking his/her Initiat to Cabal in exchange for his/her own mining machine (Initiat) is essentially exchanging his/her mining machine for game hall tokens (xINIT). On the surface, he/she can continue playing baccarat in DeFi casinos, but in reality, the control of the mining machine has been handed over to Cabal. And the Rollup project team is like a mafia running a casino, they must pay protection fees (bribes) to Cabal in exchange for VIP licenses, otherwise the Initia headquarters (L1) will directly cut off water and power The advantage here is that it is completely subject to the Initiative. On the one hand, bribery is a controversial topic, and a convenient bribery mechanism can improve user experience. In the past, commercial bribery was mainly in the Curve ecosystem, mainly around the holders of veCRV, which involves two points: 1) decentralization of power and voting; 2) parallel governance and power. If you are interested, you can open a single sheet to explain it The point I want to discuss is that when tokens are diluted, their rights are also diluted. The rights of short-term holders and long-term holders are easily broken in certain specific stages because a balance cannot be achieved, leading to what we call the "centralization trap" Let me give you an example. Short term rights holders care about the value of APY because they can enjoy higher transaction sharing/LP returns, etc., while long-term rights holders care about the long-term development of the agreement. There has been a problem where long-term rights holders exploit loopholes in their governance rights to empty the protocol's fund pool (such as a famous NFT project that uses voting to incur inexplicable expenses to empty the pool). Therefore, in my personal opinion, the centralization trap is a risk (referring to long-term holding of coins and voting), and we should need commercial bribery. If there is milk, it is mother, and please do not deceive me