Vote-Escrowed Governance (veMONI)

Moniswap uses a vote-escrowed (ve) tokenomics model, where users can lock $MONI for veMONI, granting them governance power and additional rewards. This mechanism ensures long-term alignment between liquidity providers, traders, and protocol participants.

How veMONI Works

• Users lock $MONI for a fixed duration (up to 4 years) to receive veMONI.

• The longer the lock duration, the more veMONI received (e.g., locking for 4 years grants 1 veMONI per $MONI, while locking for 1 year grants 0.25 veMONI per $MONI).

• veMONI is non-transferable and decays linearly over time as the lock duration decreases.

Benefits of Holding veMONI

1. Governance Voting: veMONI holders decide how $MONI emissions are distributed across liquidity pools.

2. Bribe Rewards: Protocols can offer bribes (additional incentives) to veMONI holders to direct emissions to their pools.

3. Trading Fee Sharing: veMONI holders earn a portion of swap fees from Moniswap.

4. Boosted Liquidity Rewards: Liquidity providers with veMONI receive higher rewards on selected pools.

5. Emission Influence: The more veMONI a user holds, the greater their impact on the protocol's liquidity incentives.

Locking $MONI for veMONI

Lock Duration	veMONI Received per 1 $MONI
1 week	0.005 veMONI
6 months	0.125 veMONI
1 year	0.25 veMONI
2 years	0.50 veMONI
3 years	0.75 veMONI
4 years	1.00 veMONI

Bribe Market Mechanism

• Projects seeking liquidity can offer bribes to veMONI holders to vote for their pools.

• Bribes can be in the form of $MONI, stablecoins, or other tokens.

• veMONI holders earn these bribes in addition to swap fees and emissions.

Sustainability of veMONI Model

• The vote-escrow mechanism incentivizes long-term holding of $MONI.

• The gradual decay of veMONI reduces governance power over time, requiring users to relock $MONI to maintain influence.

• veMONI-based emissions ensure efficient capital allocation and prevent reward farming exploits.