Understanding veCVG

For a better understanding of the following section, the reader is advised to read the vote-locking explanation at Curve.

veCVG stands for vote escrowed CVG and represents a voting power called weight. veCVG is a fork of veCRV with few differences. veCVG amount is associated with a token ID rather than a user’s address, and balance updates are stalled on Convergence’s weekly cycle (cvgCycle).

The amount of veCVG a user will receive by locking CVG depends on how long CVG are locked. The longer a user locks CVG, the more veCVG his NFT will receive.

For example:

  1. A user vote-locks 1,000 CVG for 96 cvgCycles: he will receive 1,000 veCVG;

  2. A user vote-locks 1,000 CVG for 48 cvgCycles: he will receive 500 veCVG.

veCVG amount gradually decreases as escrowed tokens approach lock expiration. veCVG holders can deploy their weight in the gauges they want to direct CVG inflation. Unlike Curve, vote locking will provide no boost, as treasury yields will be redistributed to NFT holders as an incentive.

NFT holders will also be allowed to participate in both Convergence governance and underlying protocols' governance (through mgCVG). All users that own at least 2,500 veCVG can submit CIP to the Convergence DAO.

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