Reflects the requirement to lock VELO for up to four years to convert it to veVELO. This lock-up period represents a significant opportunity cost as locked tokens cannot be transferred or sold during market movements. The lock duration directly affects voting power, creating a correlation between risk exposure and protocol influence.
[7] = ƒ(lock_period, amount_locked, price_at_locking)
lock_period — is the length of the lock-up period set up by the useramount_locked — is the amount of tokens locked up by the userprice_at_locking — is the price of the locked token position when locking them. It defines the locked value (the upper bound of forfeited value) together with the locked amountReflects the rebase distributed to veVELO holders for inflationary dilution protection. This mechanism ensures that long-term holders maintain their proportional ownership of the protocol through automated emissions, creating a sustainable value accrual system that rewards commitment to the protocol's growth.
[22] = ƒ([7], veVELO_supply, VELO_supply, emission_total)
emission_total — is the total token emission volumeveVELO_supply — is the supply of veVELO; that is, the totality of the voting power that determines the size of the locked portion of VELOVELO_supply — is the total supply of VELO. Acts as a normalising coefficientReflects the requirement to delegate or regularly vote to derive value from active VELO. This active participation requirement ensures that protocol governance remains dynamic and engaged, as value capture is tied to regular epoch-based voting participation rather than passive holding.
[8] = binary
Reflects the pro rata rewards from trading fees and additional incentives for voters. This dual reward stream incentivizes strategic voting behavior by allowing veVELO holders to capture value from both organic protocol activity (trading fees) and external stakeholder interests (bribes/incentives), creating a market for governance power.
[21] = ƒ([3], pool_fees, pool_incentives)
pool_fees — is the volume of cashflow derived from fees in the voted-for poolpool_incentives — is the volume of cashflow derived from extra incentives provided by the owner of the voted-for pool (cf. other bribe markets)Reflects the veVELO Voter's ability to affect weekly VELO emission distribution and potential governance through Emergency Council. This governance power creates a direct link between protocol value flows and voter preferences, allowing token holders to influence capital efficiency by directing emissions to the most strategically important liquidity pools.
[3] = ƒ([7], [8], user_vote_allocations, emission_distribution)
user_vote_allocations — is the allocation of voting power by the user, representing his overall allocation voting strategyemission_distribution — is the resultant distribution of epochal emissions, representing the actual voting outcome