VELO possesses a single large VCM composed of two OoVs (Future Cashflow and Governance) conditioned on Risk Exposure-activated Conditional Action and one OoV (Future Cashflow) conditioned on Risk Exposure itself. It represents the material and immaterial benefits derived from exercising voting rights upon acquiring them by transforming the token into its active form (i.e., locking it) and the material benefit (the rebase) derived from merely possessing the active form of the token.
The VCM operates through a dual-track value capture system where users first convert VELO to ve$VELO through token locking (Risk Exposure), unlocking two distinct value streams. The first stream requires active participation through voting or delegation (Conditional Action) to capture both governance benefits over emission distribution (Governance) and associated rewards from fees and incentives (Future Cashflow 2₁). The second stream automatically generates value through rebases (Future Cashflow 2₂) based solely on the locked position, creating a baseline reward for protocol 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.