# Tokenomics #### $LOXO $LOXO, a utility token built on the ERC-20 standard, strategically cultivates and fosters the protocol by incentivizing key roles through token emissions. #### $veLOXO 1.$veLOXO is an ERC-721 governance token, representing a non-fungible token in the form of a NFT, it is used for governance purposes within the protocol. Any $veLOXO token holder can vote-escrow their tokens and receive $LOXO emission. 2.The lock period of $LOXO tokens determines the amount of $veLOXO voting power received, with longer lock periods yielding more voting power. ### Specifications 1.**ve(3,3) Mechanics**: The protocol incorporates the ve(3,3) Mechanics concept, combining the anti-dilution method from Olympus DAO with Curve's vote-escrowed model. This mechanism aims to protect veLOXO holders from dilution and allows for a dynamic distribution of veLOXO tokens among participants. The maximum anti-dilution level is set at 10%. ve(3,3) has proven to align the incentives of token holders and liquidity providers which has resulted in, among other things, market outperformance of projects. 2.**Gauge**: A gauge represents a pool that offers dynamic $LOXO rewards based on the veLOXO holders' weekly voting allocation. Negative voting is not allowed. 3.**Bribes**: External parties have the option to offer custom amounts of tokens as bribes on a specific gauge to veLOXO holders in exchange for their votes. 4.**Max Lock:** The maximum lock period for $LOXO tokens is set at 2 years. Locking $LOXO tokens for this period allows users to earn veLOXO tokens with increased voting power. 5.**Farming Boost**: The protocol intentionally does not include a farming boost feature to prevent the emergence of profit-maximizing protocols on top of Loxodrome. Instead, the focus is on fostering dynamic and decentralized governance over the emissions of $LOXO tokens. 6.**Flexibility**: veLOXO positions can be merged, split, and traded on the secondary market. This provides flexibility for veLOXO token holders to manage their positions and participate in the market. ### --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.loxodrome.xyz/terminology-know/tokenomics.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.