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Balancer launches veBAL, what can Token holders get?

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By locking 80/20 BAL/WETH of BPT, users will get veBAL for governance.

Original source: Balancer

Original compilation: 0x9F, Rhythm BlockBeats

This article is based on the official views of the decentralized trading platform Balancer on social media platforms.

There are several key points in the implementation of the new Token economic model, let’s take a look:

By locking 80/20 BAL/WETH of BPT (Liquidity Token certificate of Balancer fund pool), users will get veBAL for governance. The longer they agree to lock, the more veBAL they earn and the higher the governance multiplier.

There are also some potential benefits for veBAL holders:

The locker will get 75% of the protocol fee

The accumulated swap fee on Balancer Protocol 50% of is charged as agreement fee. Therefore, equivalent to 37.5% of all fees will be allocated to veBAL holders, and having more veBAL will have more agreement fee shares.

If the swap fee for a given epoch is equal to $1 million, the protocol fee share will be $500,000. The DAO treasury will receive $125,000, while veBAL holders will be able to distribute $375,000. (This example is for calculation only and is not a financial guarantee or commitment.)

veBAL will be used as a voting mechanism for governance measures

veBAL will also be used for governance measures The voting mechanism determines which pools can get BAL's liquidity mining rewards. This means users can direct liquidity mining incentives to pools of their choice. Which brings us to our next question - BAL Battle.

BAL Battle will essentially allow projects to offer compensation or rewards to veBAL holders for voting in their preferred direction, hence the term "bribe" .

This graphic helps illustrate bribery how is it done

But there is one more potential benefit worth highlighting - increased BAL rewards for veBAL holders.

Compared to the initial liquidity mining rewards, where liquidity providers were only rewarded based on their share of total liquidity, we will now implement Multiplier for the timelock mechanism. The longer you lock the same amount of BPT, the higher the reward.

Based on the new mechanism, if you lock the same number of Tokens, but the time is twice as long as others, you will get twice the voting rights and the matching Twice the benefit.

BAL supply schedule confirmed

Additionally, BAL supply schedule confirmed , and will be set permanently. There is currently a weekly supply of 145,000 BAL, which is unsustainable without a supply cap. There are two important changes to the new inflation schedule.

First, the new inflation schedule will be to halve the inflation rate every 4 years.

Secondly, the total supply of BAL is capped at 94,000,000 pieces.