GOVERNANCE & DAOS

Vote Escrow (Vote Escrow (veToken))

Definition

Vote escrow allows users to lock tokens for extended periods to receive enhanced voting power and rewards. Longer lock periods typically provide more voting weight and benefits.

Example

💡 Example

Curve's veCRV system lets users lock CRV for up to 4 years, with longer locks providing more voting power and higher rewards from protocol fees.

Risks to Consider

⚠️ Risks
  • Lock-up periods
  • Opportunity cost
  • Token price volatility

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