GlossaryAdvanced
Vote-Escrowed Token
A governance token that must be locked for a period to gain voting power and rewards.
A vote-escrowed token model requires holders to lock their tokens for a chosen period in exchange for voting power and (on many protocols) a share of fees, generally with longer locks granting proportionally more voting power.
This design is intended to align long-term-committed holders with the protocol's governance, at the cost of the locked tokens' reduced liquidity during the lock period.
Examples
- A longer lock period in a vote-escrowed model typically grants more voting power per token.
- Tokens locked under this model are generally illiquid until the lock period ends.