veToken Model
Dolphin.fm applies and enhances the vote-escrowed (veToken) model, aiming to encourage long-term decision-making, align incentives across protocol stakeholders, and create favorable supply and demand dynamics for price appreciation.
$veDOL Staking and Redemption
Users obtain $veDOL by staking $DOLFM. The longer the staking period, the more $veDOL is earned. $veDOL cannot be transferred or sold but can be redeemed for $DOLFM every quarter. The redemption quota accumulates linearly from the first day of staking. For example, if a user is to receive N $veDOL over the locking period, each quarter of the first year, N/4 $veDOL can be redeemed into $DOLFM.
Formula for $veDOL Accumulation:
where x is the number of years.
When a user decides to stake $DOLFM, they start receiving $veDOL at a declining rate over time. The longer the staking period, the higher the initial rate.
Unlocking $DOLFM
Wait for Lock Period Expiry: Unlock for free when the vote lock period expires.
Early Unlocking: Users can unlock $DOLFM at any time, but early unlocking deducts rewards by reducing the amount of $veDOL received from the staked $DOLFM. The deduction rate is the minimum value between 0.75 and the time until unlock divided by 2.
Example:
A user stakes 10,000 $DOLFM for 2 years, earning
The APR is 22% if the price remains constant (real APR could be 220% with projected price increases). The distribution rate over time is:
After 1.5 years, if the user unlocks, they receive 
Governance Voting
$veDOL holders participate in governance voting on key protocol decisions:
Buyback and Burn: Decide the portion of the treasury fund for buyback and burn every quarter (initially 50%).
Minting Algo parameters: Set the speed of new token generation.
Product Currency Support: Determine which tokens are supported by the built-in products.
Minted Token Distribution: Allocate the distribution of newly minted tokens into each vault based on $veDOL votes, incentivizing product participants to stake $veDOL for higher returns.
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