Voltage governance model 2.0
What is veVOLT?
VeVolt, Voltage Finance's new escrow voting token, replaces the previous xVolt model, aiming to refine DAO voting processes while rewarding committed users and long-term stakers.
VeVolt implementation guarantees participants in DAO governance are genuinely invested in our platform's future success. The veVolt model offers numerous benefits:
- 1.It reduces selling pressure on the VOLT Token by encouraging users to commit their tokens for prolonged periods, thereby boosting token value.
- 2.It promotes long-term staking by rewarding users who commit their tokens for extended periods.
- 3.Long-term stakers receive additional advantages such as enhanced voting power, DAO ownership, and eligibility for exclusive airdrops and revenue distributions.
The veVolt model is grounded on a locking mechanism. The longer you lock your VOLT tokens, the more voting power and DAO ownership you acquire. For instance, if you lock 100 VOLT tokens for a year (50% of the maximum duration), you'll receive a veVolt balance of 50 veVolt tokens at a 0.5:1 ratio.
veVOLT staking UI
Your veVolt tokens will gradually decay until they reach zero, at which point your VOLT tokens are unlocked, and you lose voting power. To maintain or grow your veVolt balance, you can extend your lock period or add more tokens to your existing position.
Your share of the DAO's revenue is determined by your veVolt balance. Stakers with higher veVolt balances receive a larger portion of the revenue pool. Furthermore, because veVolt stakers can influence DEX operations, they can direct liquidity towards their preferred farms by voting on farm rewards distribution.
Every week (which is an epoch) the DAO distributes the accrued revenue generated by the Dex. At the end of each week, we check how many veVolt tokens each user has. Then, by the end of the following week, we distribute to the users Volt tokens based on their veVolt balance of the previous week.
Each epoch starts every Thursday, at 12:00:00 AM UTC.
The annual percentage yield, or APY, changes based on the last week's data and it is variable because it depends on how long each user decides to lock their tokens for.
Given that veVolt tokens are locked and non-transferable, we have established an unlock system with a penalty for users who wish to access their tokens before the lock period concludes. The penalty is calculated by the lesser value between 50% and the ratio of the remaining lock time to the maximum lock time.
Step 1: Prepare Your Wallet
Ensure you have a suitable wallet (like MetaMask or WalletConnect) installed on your device and that it contains VOLT tokens for staking. You also need a small amount of FUSE for transaction fees.
Step 2: Visit the veVOLT Staking Page
Step 3: Connect Your Wallet
Click on the 'Connect Wallet' button at the top-right corner of the page and select your wallet type (MetaMask, WalletConnect, etc.). Follow the prompts to complete the connection process.
Step 4: Enter Staking Details
Once your wallet is connected, you'll see an option to stake with veVOLT your VOLT tokens. Enter the number of VOLT tokens you wish to stake in the provided field.
Step 5: Choose Lock Duration
Select the desired lock duration for your tokens. The minimum lock time is 1 month, and the maximum is 24 months. The longer you lock your tokens, the more veVOLT tokens you'll receive, thus increasing your voting power and revenue share.
Step 6: Approve Transaction
After you've entered the staking details, click the 'Approve' button. This will initiate a transaction that requires your approval. Check your wallet and confirm the transaction.
Once the transaction is successful, you'll receive your veVOLT tokens in your connected wallet. You can now participate in Voltage Finance governance and earn rewards based on your veVOLT balance.
Here is a video tutorial to guide you through the steps: