📈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.