LIX & veLIX

How the protocol's governance token $LIX relates to voting-escrowed $LIX, a unit of voting power

$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. veLIX however is non-transferable, so be aware that neither you nor any admin can bypass the timelock on your staked $LIX!