Time-staking is a modified form of governance staking. Governance voters lock their governance tokens to participate in voting. This prevents governance attacks and aligns incentives between voters and long-term holders.
- DAO treasury uses accrued fees to buy back NEUR tokens
- Treasury donates bought-back NEUR as rewards for users with veNEUR balances
- Users can claim their share of bought back NEURs according to the veNEUR balance
- Time-stake (lock) NEUR to receive governance balance (veNEUR balance)
veNEURs represent one’s balance of NEURs that have been locked, weighed for the time remaining in the lock. The longer the time remaining in the lock, the more veNEUR a user will have for the same amount of locked NEURs:
The number of veNEURs and, subsequently, voting power decrease linearly over time. In the meantime, the user can also increase their veNEUR balance by locking up more NEUR, extending the lock end date, or both. 2 years = 100% weight, 1 year = 25% weight, etc.
Basically, if a user locked 2000 NEURs for a year (or 1000 NEURs for two years), their voting power over time will look like that, slowly declining:
The longer the lock, the more voting power and influence, and the more rewards can be earned. Users therefore have to constantly extend their locks (up to the maximum 4 years) in order to maintain their weight.
Your voting power applies to all pools but may produce different boosts based on how much liquidity you provide and total liquidity the pool has.
If other liquidity providers vote lock more NEUR, your boost will stay what it was when you applied it. If you abuse this, another user can kick and force a boost update to take you down to your real boost.
Your voting weight decreases over time, but your boost will take notice of your decreasing voting power at certain checkpoints like withdrawing, depositing into a gauge, or minting NEUR.
For example, if you start at 1000 veNEUR and your voting power decreases to 800 veNEUR, your boost will still use your original voting power of 1000 veNEUR until a user checkpoint.