Bao Finance uses a voting escrow system to align incentives and give governance powers to the community.

BAO holders can lock their tokens for up to 4 years to earn veBAO voting power. The longer the lock duration, the more veBAO they receive.

veBAO has these properties:

  • Voting Rights - Votes for governance proposals.

  • Rewards Boosts - Up to 2.5x boost on BAO rewards on the platform

  • Non-transferable - veBAO is a points system to represent how many BAO tokens you have locked and for how long.

    • 1 BAO locked for 4 years = 1 veBAO

    • 1 BAO locked for 3 years = 0.75 veBAO

    • 1 BAO locked for 2 years = 0.5 veBAO

    • 1 BAO locked for 1 year = 0.25 veBAO

veBAO holders can vote for the weighting of rewards distributed to liquidity pools. Every month, BAO purchased with revenue will be sent as incentives to BAO liquidity pools based on the weighting assigned by voters.

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