veAPUFF

Introduction to veAPUFF

veAPUFF, or Vote-Escrowed APUFF, is a key component of AirPuff's governance structure, designed to increase both the utility of the $APUFF token and the protocol's decentralization. By participating in veAPUFF, token holders can unlock additional features, enriching the $APUFF token's utility within the ecosystem.

Additionally, veAPUFF acts as a mechanism to decrease the circulating supply of $APUFF tokens. This not only enhances the token's stability but also strengthens the overall protocol. Utilizing veAPUFF is crucial for sustaining the long-term viability and success of the AirPuff ecosystem.

Lock APUFF to get veAPUFF

By locking your APUFF tokens, you can obtain veAPUFF. The amount of veAPUFF allocated is determined by how much and for how long you decide to lock your APUFF tokens, with a maximum period of up to two years. This process links your wallet to a specific veAPUFF expiry date.

Lock Time Option	vePUFF to receive
2 years	1 $APUFF = 1 veAPUFF
1 year	1 $APUFF = 0.5 veAPUFF
6 months	1 $APUFF = 0.25 veAPUFF
3 months	1 $APUFF = 0.125 veAPUFF
1 month	1 $APUFF = 0.04 veAPUFF
1 week	1 $APUFF = 0.0096 veAPUFF

Over time, the value of your veAPUFF decreases, eventually reaching zero at the end of the lock-up period. Subsequently, your locked APUFF tokens are released and available for use again.

Additionally, each time you lock APUFF, the lock expiry date will be updated to the latest lock duration. For example, if you locked 1 $APUFF for 2 years one year ago and lock an additional 1 $APUFF for 2 years today, both will now share an updated lock expiry date of 2 years from today. You can also relock your tokens to extend the locking period and refresh your veAPUFF balance.

The Role of veAPUFF in Incentive Distribution

veAPUFF plays a crucial role in directing the distribution of rewards across different pools within AirPuff. Holders of veAPUFF have the power to vote on the allocation of rewards, effectively steering liquidity towards preferred pools.

The core idea here is simple: the more veAPUFF you hold, the greater your influence over the incentive distribution. This system not only aligns with the goals of decentralized governance but also enhances the utility of the $APUFF token by directly involving holders in the protocol's development and growth strategies.