We are thrilled to announce our latest product update: the introduction of veLISTA and our veToken governance Model. LISTA, the governance token for Lista DAO, is distributed to users for engaging in various protocol activities. By locking their LISTA tokens, users can mint veLISTA, enabling them to actively participate in protocol governance, which includes raising and voting on proposals. At the same time, users will be entitled to revenue sharing as well.
Our goal with LISTA is to establish an open and transparent decision-making process that leverages the collective wisdom of the community to drive the operations of Lista DAO. To achieve this, we will gradually transfer decision-making power to the community, ensuring a fully decentralized and empowered governance model.
Understanding veLISTA & veToken model
To understand how users can obtain veLISTA and what purpose veLISTA serves, we must first understand what veToken model is. The veTOKEN model, introduced by Curve Finance, is a tokenomics mechanism designed to align incentives and encourage long-term commitment among token holders. In this model, users lock their tokens (referred to as “veTokens”) for a specified period, during which they receive governance power and various rewards. The longer the lock period, the more veTokens they receive, translating to greater voting power and higher rewards.
This system incentivizes users to commit to the protocol for extended periods, fostering stability and aligning their interests with the long-term success of the platform. Hence, Lista’s token locking into veLISTA is inspired by, and functions similarly to, the Curve Finance’s veToken model.
How Locking Works
Users receive veLISTA by locking LISTA for a duration of up to 52 weeks. The amount of veLISTA awarded is directly proportional to the number of weeks the LISTA is locked. Each user can maintain only one lock with a single unlock duration, but they can increase the amount of locked LISTA or extend the lock period of an existing lock. Every Wednesday at UTC+0, the lock duration decreases by one week. Once the lock duration reaches zero weeks, the tokens can be withdrawn at any time.
Users can exit a locked position early by paying a claim fee, which starts at 100% and decays linearly based on the remaining weeks until the tokens unlock.
The exact calculation used is:
Early Withdrawal Fee = (total Locked amount X weeks to unlock) / 52
Protocol Fees
Users who hold veLISTA will also receive community incentives that comes from protocol fees based on the amount of veLISTA they hold. These rewards comes in the form of lisUSD, WBETH, slisBNB, and BNB rewards.
More than 50% of the Protocol fees will be turned into community incentives and distributed to veLISTA holders
More details on Lista DAO’s protocol fees can be found in our Gitbook.
The road to decentralization
During Lista DAO’s transition into our veToken model, governance will be gradually passed on to veLISTA holders. Users will be able to vote on several parameters. However, this shift toward a fully decentralized governance model will be gradual rather than instantaneous.
To ensure system security and prevent malicious actions, the core team will initially retain the power to veto harmful proposals, aligning with our mission to prioritize the best interests of Lista DAO. As Lista DAO matures, more power will be gradually transferred to the DAO. Our ultimate goal is to fully transition into a DAO where governance holds absolute power.
Additionally, once veLISTA is launched, veLISTA holders will begin receiving protocol fees, further incentivizing active participation in governance and the long-term success of Lista DAO.
