Proposal 21 was the most recent proposal to pass through Snowball’s governance, and quite overwhelmingly so with 99.99% of votes in favor. This article will introduce veToken Finance for those out of the loop and explain what the proposal means for Snowball moving forward. The original proposal can always be seen on-chain or through our app here.
What is veToken Finance?
The platform being launched in the near future aims to leverage the technology of these so-called ‘veAssets’ to offer boosted rewards from projects using such assets, governance participation, and more. ‘VE’ stands for ‘Voting Escrow’, and those familiar with Snowball are also familiar with this function due to our very own xSNOB token functionality.
“veToken Finance’s mission is to support and help projects which adopt veToken tokenomics and enable regular DeFi users to boost yield and farming rewards at the same time.” - Jaqen (veToken Finance Core Team Member)
The Snowball community has greatly benefitted from xSNOB through the ease with which we align voting power with economic incentives, create incentives for long-term commitments to the protocol, and share protocol revenue. Many other communities in the space, and other blockchains, have also adopted similar tokenomics due to this, and veToken plans on building on top of this infrastructure.
What will Proposal 21 do?
With the acceptance and execution of proposal 21, veToken will be able to permanently lock SNOB into xSNOB, in order to offer some Snowball services to their users.
These include access to xSNOB-boosted SNOB rewards in our pools (even if the user doesn’t have xSNOB themselves) as well as being able to mint vetSNOB 1:1 with SNOB. With this, veToken users will be able participate in Snowball governance, get a share of protocol revenue, and provide liquidity for the token in order to gain VET rewards on their app.
In practice, this brings more demand for and diminishes the circulating supply of the SNOB token, as well as initiates a mutually beneficial partnership between our two platforms, and bringing more TVL to Snowball while granting increased yield rates for veToken users. We look forward to continue building upon our governance infrastructure together with our new partners in this space.
About Snowball
Snowball is a Venture DAO and an auto-compounder for liquidity rewards. It was the first auto-compounder launched on Avalanche and it prides itself on being entirely community run. If you’d like to be a part of Snowball, join the conversation in Discord or Telegram. Stay up to date on our Twitter.
