Vote-Escrowed Token(ve)
A token locking mechanism where users lock tokens for a period to receive boosted voting power and rewards.
In-Depth Explanation
The ve-model (pioneered by Curve's veCRV) requires locking tokens to participate in governance and earn maximum rewards. Longer locks = more voting power. This reduces sell pressure and aligns long-term incentives, but creates illiquidity and complexity.
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Related Terms
Governance Token
A token that grants voting rights over protocol decisions, parameters, and treasury allocation.
Staking
Locking tokens in a protocol to earn rewards, secure a network, or gain governance rights.
Bribes
Payments made to governance token holders to influence their votes toward specific proposals or gauge allocations.
More in Tokenomics
View all →Emissions
New tokens distributed by a protocol as incentives, typically to liquidity providers or users.
Liquidity Mining
Earning token rewards by providing liquidity to a DeFi protocol.
Token Buyback
When a protocol uses revenue to purchase its own token from the open market, reducing circulating supply.
Dividend
Direct distribution of protocol revenue to tokenholders, typically in ETH, stablecoins, or the protocol's native token.