Glossary
ve-Token Model
Vote-escrowed tokens: holders lock the governance token for a chosen duration to receive voting power and yield, with longer locks earning more.
Curve introduced veCRV in 2020: lock CRV for up to four years to receive veCRV (non-transferable), which confers voting power, a share of protocol fees, and the ability to direct CRV emissions to specific pools via gauge votes.
The model rewards long-term holders and forces governance participation to be sticky. veToken variants are now common (Balancer veBAL, Frax veFXS, Velodrome veVELO, Aerodrome veAERO), often combined with a vote-bribing market (Convex, Votium) where pools pay veToken holders for their votes.