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For a rollup and its users to be eligible for VIP rewards, they first need to be whitelisted. The whitelisting process comprises 2 steps:
  1. Reaching the minimum INIT TVL threshold
  2. Whitelisting via Initia L1 governance

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Minimum INIT TVL Threshold

To be considered for whitelisting on VIP, rollups must first meet a minimum INIT TVL (Total Value Locked) threshold.
  • Rollups that somehow manage to get whitelisted without reaching the minimum INIT TVL threshold will still not be eligible for rewards until they meet this requirement.
  • Rollups that have been whitelisted and successfully reached the minimum INIT TVL threshold will forfeit any VIP rewards if their TVL subsequently falls below this threshold.

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Governance Whitelisting

Once the minimum INIT TVL threshold is reached, the rollup needs to then submit a whitelisting proposal to the Initia L1 governance. As with all governance proposals, INIT and Enshrined Liquidity stakers vote on the whitelisting proposal.
The following types of rollups are unlikely to be approved:
  • Rollups that add little value to the ecosystem, such as rollups that only accumulate TVL with no productive use case
  • Rollups that exist solely to allow the corresponding app to qualify for VIP rewards, such as rollups where the app is otherwise completely off-chain