This sub-mechanism represents tangible and intangible value derived from controlling the decision-making regarding rewards allocation, protocol parameters, and other decisions related to the Yield Basis DAO.
One of the core governance decisions that veYB holders make is allocating YB rewards to various Yield Basis LP tokens. These YB Rewards are allocated in exchange for LP-related Yield, which is transferred to veYB holders (see detailed explanation below).
The requirement for obtaining governance power is locking the YB token in the vote-escrow contract.