# LIX & veLIX

$LIX is the protocol's governance token. Typically, a user's voting power in the DAO would be proportional to their $LIX holdings, but similar to Curve DAO, Lixir DAO has a model in which any $LIX holder will have to make a time commitment by staking their $LIX with a pre-selected timelock in order to be considered part of the DAO. When staking $LIX, one will receive 'veLIX' (voting escrowed LIX). The veLIX quantity received depends on the timelock selected in such a way that 

$$
\[\text{veLIX quantity received}] = \frac{\[\text{timelock duration in years}]}{4}\[\text{LIX quantity staked}],
$$

where 4 years is the maximum timelock possible. Rather than one's $LIX holdings, one's veLIX holdings are now proportional to their voting power in the DAO and will soon be proportional to their share of the [Protocol Revenue](https://lixir-finance.gitbook.io/lixir-doc/lixir-dao/protocol-revenue). veLIX however is non-transferable, so be aware that neither you nor any admin can bypass the timelock on your staked $LIX!