# veTokenomics

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**Publisher:** Decentralized Finance Publication

## Definition

A governance token design where users lock tokens for a defined period (up to 4 years) to receive vote-escrow tokens (ve tokens) that grant boosted governance power and protocol fee rights. The longer the lock, the more veTokens received. Popularised by Curve Finance (veCRV), the model aligns long-term token holder incentives with protocol health. Variations include Aerodrome's veAERO, Velodrome's veVELO, and Pendle's vePENDLE. Critics note ve models can concentrate power in large early holders.

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Canonical: https://decentralized-finance.io/glossary/vetokenomics/