Lock

Understanding and Using veTKN

  • veTKN is the center piece of the Tokan Exchange. In exchanging for locking theirTKN, users receive veTKN, allowing them to vote for gauges, receiving 100% of the trading fees and 100% of the incentives for the associated pool.

  • In the future, veTKN holders will also be able to partake in governance and cast votes for protocol improvement proposals.

Changes

The Transfer ability has been removed for veTKN holders; meaning veTKN cannot be transferred to another account. This has been implemented to increase the stability and sustainability of Tokan. veNFT sales contribute towards the death spiral faced by many previous attempts at the solidly model.

In essence, veTKN will function similar to veCRV from Curve Finance, with the added ability to have multiple locks, and being able to merge and split existing locks.

veTKN Voters Receive

  • Trading fees generated by the pool(s) they vote for

  • Incentives deposited for the pool(s) they vote for

  • Weekly veTKN rebase

veTKN Specifications

  • ve(3,3) Mechanics: The Olympus DAO anti-dilution method is combined with Curve's vote-escrowed model in the Solidly-initiated ve(3,3) Mechanics concept. This mechanism safeguards veTKN holders from dilution and enables a dynamic distribution of veTKN among participants over time.

  • Gauge: A contract that dynamically rewards TKN emissions based on veTKN weight each epoch, to the corresponding pool.

  • Incentives: Custom amount of tokens paid by a third party on a gauge to veTKN holders in exchange for their votes.

  • Max Lock: 4 years. The longer the lock, the greater the voting power; meaning more rewards.

Voting

  • To vote, it is important to be aware of epochs. Each epoch lasts for 7 days, after which the incentives and trading fees are distributed.

  • You earn only from the gauges (pools) you have voted for.

  • Trading fees and incentives are claimable as a lump sum after the epoch has ended.

  • You can change or reset your vote at any time.

  • Remember: You must vote in each epoch to earn weekly rewards.

By participating in veTKN voting and governance, holders have the opportunity to earn trading fees, incentives, and weekly distributions.

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