Understanding vote escrow and resources to learn from (nothing gov related just education)

Curve Resources (docs for detailed info and code we will be using)

Curve Tokenomics from start until now (more details on how they premined some tokens and left some others for the mining epochs that sustain the current curve wars in veCRV context

Convex docs below…this protocol gives a good understanding of how governance power and incentives are collected in curve vote escrow system as that is convex’s design (be the best at the curve wars strategies basically)

Yearn finance is also a good resource to understand in the context of yearn vaults that are designed to optimize yield on curve pools as well, using y/yv tokens…different than convex but also very much so in the similar business of curve liquidity aggregation

The idea with BAO using the same vote escrow system that curve has implemented would be that only those actively participating in the vote escrow system laid out above will benefit beyond trading fees on their LPs or any arbitrary amount of demand put onto the BAOv2 token that results in deflationary/upward price movement regardless of the fact that BAOv2 emissions continue to inflate the token supply (similar to the scenario of the curve token increasing in price)… the parties determined to benefit from being active will be (Liquidity providers who stake into BAO liquidity gauges) and those that lock BAO into veBAO)

Here is a quick and simple graphic in curve’s resources that gives an idea of what will be possible with our new governance model the smart contract galaxy is proposing

-Basically replace veCRV with veBAO in the graphic
-lending and trading fees can come from the respective AMM the LP was created at (Uni, Sushi, balancer, and/or curve. not just curve in this case)
-gov fees refers to the fees we generate with our products and liquidity instead of exclusively with CRV pools

granted this design we have in process is not finalized so things will be subject to change but this is the main idea…

I’ll get to any questions below if you have any :)

With Love,

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