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veNFT Value Proposition

Problems with Vote-Escrowed Governance arrangements, our solutions
OpenXReserve NFTs will utilize deflationary vote-escrowed governance tokens and underlying staked LP tokens to reformulate the promising decentralized ve Governance structure.

Problems

  1. 1.
    Vote-escrowed (or "ve") arrangements lock value, making it illiquid and thus unable to facilitate asks and offers while opening it up to isolated liquidity attacks (e.g. CRV short-seller attack).
  2. 2.
    This value is diluted by persistent emissions with no vesting schedule to Liquidity Providers.
  3. 3.
    veNFTs solve for dilution but involve gas and time inefficient claims and rebases.
  4. 4.
    The vote-escrowed position itself has a value that is often difficult to hypothecate.

Solutions

  1. 1.
    Make liquidity provision a condition of participation in governance.
  2. 2.
    Hardcap emissions with deflationary mechanics to eliminate unnecessarily dilutive expansion.
  3. 3.
    Send emissions and transaction fees directly to the vote-escrowed position.
  4. 4.
    Make the entire position into a veNFT, opening up the escrowed value to secondary markets.
Last modified 8mo ago