The veToken Model
Arable Protocol intends to implement a veToken-style concept, as Curve did in 2021.
The main benefits of a veToken-like model for Arable are:
1. Increase the share of locked ACRE and thereby reducing the circulating supply
2. Governance members committed to the sustainability of the protocol.
Arable will offer synthetic farming, an essential part of the Arable protocol, at the launch of MVP. Farmers, minters, traders, and liquidity providers earn ACRE which they can stake to get veToken and vote on ACRE distribution parameters.
According to their ACRE stake users receive more veTokens and voting power. This race for voting power ensures the protocol’s longevity and sustainability while putting control in the hands of its stakeholders.
Synthetic farming won’t be implemented until the protocol has shown economic stability to ensure a smooth transition to a veToken-like model.
The Pioneers
Michael Egorov’s veToken model involves token holders locking their tokens in exchange for protocol rights like governance power.
Members who lock CRV receive non-transferable veCRV (vote-escrowed CRV).
The veToken concept helps attract long-term, loyal stakeholders rather than short-term FOMO-inducing ones. This allows a community to resist raising the token’s price by whatever means.
Here for the Long-Run
Arable’s objective is to create a mechanism that functions similarly to Curve’s veToken model in a way that is compatible with the economics of our protocol and maintains the spirit and advantages that have made the veToken model so popular for Curve and other DAOs.
About Arabel Protocol
Arable is the world’s first synthetic asset issuance protocol to provide single-chain farming experience to all crypto yield farmers for all cross-chain assets. Arable is building a scalable and the first decentralized farming protocol.
About Curve Finance
Curve is an exchange liquidity pool on Ethereum designed for: extremely efficient stablecoin trading, low risk, supplemental fee income for liquidity providers, without an opportunity cost.
SOURCE
https://medium.com/@ArableProtocol/putting-a-bend-in-arable-the-vetoken-model-fedbedf867d8
