Consider this as a rough explenation to the VCA. The new, updated Axion whitepaper has not yet been released.
Venture Capital Auction is a unique auction soon to be implemented on the Axion network(Q1 2021)
To understand the VCA you have to understand the ordinary Axion Auction system.
Each day there is an Axion Auction, where a pool of Axion is on sale. Users place a bid of ETH. Of every ETH sent to the auction 80% is used to buy back AXN from UniSwap and redistribute them to those who have an active Axion stake(the other 20% goes back to the Axion team for further development and running costs ).
Your piece of the cake is decided by the number of shares you are holding, compare to the total amount of shares of other holders.
The AXN your stakes collect will be tied to your stakes until the stakes are mature and withdrawn. When you withdraw your mature stake you will receive your initial principal and your accrued interest AXN.
What differs VCA from the regular auctions is the kind of dividends you will receive from the ETH placed in the VCA Auctions. 85% of the ETH sent to the auction is used to buy wrapped BitCoin(wBTC) plus another altcoin. 10% will be sent back to the user that placed a bid in the form of wBTC+Altcoin and 5% will go to the Axion team.
The Coins distributed to the stakers from the VCA's will be available for withdrawal as soon as they land with no lock-up period.
As I'm writing this there roughly 3500 stakes with a total of 56 billion(of a total of 264 billion total supply) AXN locked up for 5555 days. A lot of people have figured out that making 5555-day stakes is the most efficient way to maximize your dividends from the VCA. For more information about stakes and statistics, visit Axion.Today
To get the most out of the VCA, the user should aim to maximise theire shares. The most effiecent way to boost your share rate is to make as long stakes as you can. Longest stake on the Axion network is 5555 days (15,2 years).