TWIN and veTWIN Tokens
The TWIN Finance Protocol Token (TWIN) serves as the native token of the TWIN protocol. By locking TWIN tokens, users can create veTWIN tokens, which function as both governance and utility tokens within the TWIN Finance protocol. TWIN Tokens have three primary possible applications:
Governance Voting Power: veTWIN tokens form the foundation of users' voting power in the governance process. These votes encompass:
Voting on whether an asset has exceeded its upper limit and should be frozen ("Freeze Votes").
Voting on the price of an asset at the time of its expiry ("Expiry Votes").
Voting on grants for services provided by users who contribute to the success of the TWIN Finance protocol ("TWIN DAO Grant Votes").
Voting on whether new assets should be allowed to be created ("New TWIN Asset Proposal Votes").
Voting on TWIN Finance protocol upgrades ("Upgrade Votes").
Trading Commission: A trading commission of 0.05% is imposed by the protocol on each trade conducted on the internal TWIN marketplace. This commission may be used to repurchase TWIN tokens, a. o. measures to incentivize and reward TWIN token holders.
Voting Rewards: Rewards for voting are distributed in the form of liquid TWIN tokens.
How to mint veTWIN Tokens
To mint veTWIN tokens, a user must voluntarily lock their TWIN tokens. Generally, the longer the TWIN tokens are locked, the more veTWIN tokens are minted. The maximum locking period is 4 years. When TWIN tokens are locked for 4 years, the TWIN to veTWIN ratio is 1 to 1. The relationship between the remaining lock time and the TWIN to veTWIN ratio is linear. For instance, if tokens are locked for 1 year, the TWIN to veTWIN ratio will be 4 to 1. Additionally, as the lock duration decreases over time, the quantity of veTWIN tokens gradually decreases.
Users can increase the number of veTWIN tokens by extending the lock time or increasing the number of tokens locked at any time. After the lock time expires, users can redeem the full amount of locked TWIN tokens.
This "voting escrow" concept, popularized by Curve Finance, grants greater voting power (and rewards) to users who believe in the protocol's long-term success and have a more significant stake in it compared to users who do not lock their TWIN tokens.
Where to trade the TWIN token:
You can trade the TWIN token either on the internal market on app.twinfinance.io or on third-party marketplaces. Compare the available options to secure the best price.
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