Velodrome created this value-capturing mechanism as a version of original Curve vote-escrow. The differences with Curve's veCRV are: (1) dilution protection, offsetting inflation to all veVELO lockers (via rebase) (2) protocol fees are obtainable only for active governance participants (3) all LP fees are distributed to veVELO stakers, accordingly to particular pools they voted for emissions; in turn, LPs receive new VELO token emissions VELO has a single Value-Capturing Mechanism composed of two OoVs (Future Cashflow and Governance) conditioned on Risk Exposure-activated Conditional Action and one OoV (Future Cashflow) conditioned only on Risk Exposure (veVELO lock-up). The value-capturing mechanism operates through a dual-track value capture system: - First, users lock VELO to veVELO (the lock-up condition) - Then, the VELO-veVELO lock-up unlocks two distinct value streams The first stream requires active participation through voting or delegation to capture both governance benefits over emission distribution and associated rewards from fees and incentives. The second stream automatically generates value through rebases based solely on the locked position, creating a baseline reward for lock-up commitment. This architecture creates a balanced system that rewards both passive commitment and active protocol participation, while ensuring that maximum value capture requires full engagement with protocol governance.