Comment on page
$SECT holders can obtain vote-escrowed SECT ("$veSECT") by locking their tokens, with the number of $veSECT received increasing based on the duration of the lockup period. The $veSECT tokens are non-transferable and provide significant value accrual opportunities for both $veSECT holders and the broader Sector ecosystem.
Value Accrual: $veSECT Holder
- Boosted Deposit Emissions: $veSECT holders receive boosted emissions for deposits in our Single Strategy and Aggregator Vaults based on the locked amount
- Protocol Fee Sharing: $veSECT holders can vote and determine the protocol fee sharing structure and the percentage that gets distributed to $veSECT holders.
- Access: As a community-driven platform, the Sector collective will guide other $veSECT benefits, such as early or whitelist access to certain Vaults and strategy types.
Value Accrual: Sector Ecosystem
- Governance: veSECT will be used to define important parameters of the Sector ecosystem. Holding $veSECT grants users the right to participate in Sector’s governance decisions, ensuring the community remains at the core of the project’s evolution.
- Long-term sustainability: Requiring token lockup periods discourages short-term speculators and promotes longer-term engagement with the protocol by our depositors and integrated protocols.
- Fair voice: Conversion to $veSECT and the importance of lock duration help limit the influence of large token holders, ensuring a more balanced governance process.
Our token models aim to promote a sustainable ecosystem in both the short and long-term by providing a mechanism for community-driven governance. As our governance token, $veSECT allows the community to participate in the decision-making process regarding the allocation of resources and the future direction of the Sector ecosystem.