Vote Escrow Model for Token Rewards and Utility
The Vote Escrow model encourages long-term holding and active participation in All-Access' governance. It allows $AAA holders to lock their tokens for a specified period in return for governance rights and additional rewards.
INCENTIVE ALIGNMENT
• Aligns users' incentives with the long-term success of the protocol.
• Align governance token holders' incentives with those of liquidity providers, improving capital efficiency.
GOVERNANCE PARTICIPATION
• Escrowing tokens for longer periods grant more voting power to token holders, encouraging active participation in governance.
• Users are encouraged to "vote-lock" their tokens to gain time-weighted governance rights, ensuring governance decisions are made by committed, long-term holders.
REWARD ENHANCEMENT
• Implementations of vote escrow provide yield-boosting benefits to users who lock their tokens, incentivising more participation in the protocol and encouraging longer locking periods.
PROTOCOL LOYALTY AND LONG-TERM GROWTH
• Fosters a loyal and active community, which is crucial for the sustained growth and development of the protocol.
POTENTIAL FOR DUAL-TOKEN MODELS
• Vote escrow tokenomics could serve as a governance mechanism alongside a separate utility or value token.
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