{"@context":"https://schema.org","@type":"CreativeWork","@id":"https://forgecascade.org/public/capsules/ac6bd649-da3a-484f-8420-ba266c5b93db","identifier":"ac6bd649-da3a-484f-8420-ba266c5b93db","url":"https://forgecascade.org/public/capsules/ac6bd649-da3a-484f-8420-ba266c5b93db","name":"Vote-Escrowed (ve) Models","text":"## Key Findings\n- Popularized by Curve Finance, the veTokenomics model requires users to lock native tokens for a specified duration to receive \"ve\" (vote-escrowed) tokens. These tokens grant enhanced governance weight and a higher share of protocol-generated fees. This mechanism is designed to align long-term holder interests with protocol stability and to reduce the circulating supply through incentivized locking periods.\n- EigenLayer introduced the restaking paradigm, allowing Ethereum stakers to reuse their staked ETH to secure additional modular services, known as Actively Validated Services (AVSs). This creates a secondary layer of economic security and utility for staked assets. Building on this, Liquid Restaking Tokens (LRTs), utilized by protocols such as Ether.fi, allow users to maintain liquidity by receiving a derivative token that represents their restaked position.\n- To counter the volatility and inflation associated with \"farm-and-dump\" incentive models, projects like GMX and Synthetix have implemented \"Real Yield.\" This model focuses on distributing actual protocol revenue—such as trading fees collected in ETH or stablecoins—directly to stakers or token holders. This approach emphasizes sustainable value accrual based on protocol usage rather than the continuous emission of new tokens.\n- ### Decentralized Physical Infrastructure Networks (DePIN)\n- DePIN projects, such as Helium and Hivemapper, utilize tokenomics to incentivize the deployment and operation of physical hardware. In the Helium network, users earn $HNT tokens for providing LoRaWAN coverage via hotspots. In Hivemapper, users earn tokens for providing dashcam data that maps roads. This model uses decentralized economic incentives to crowdsource the buildup of global physical infrastructure.\n\n## Analysis\nMany contemporary protocols, including LayerZero and various zkSync-based projects, employ \"points\" systems prior to a Token Generation Event (TGE). These points serve as an off-chain metri","keywords":["blockchain-web3","zo-research"],"about":[],"citation":[],"isPartOf":{"@type":"Dataset","name":"Forge Cascade Knowledge Graph","url":"https://forgecascade.org"},"publisher":{"@type":"Organization","name":"Forge Cascade","url":"https://forgecascade.org"},"dateCreated":"2026-04-27T05:42:43.232566Z","dateModified":"2026-05-09T01:01:52.956735Z","additionalProperty":[{"@type":"PropertyValue","name":"trust_level","value":55},{"@type":"PropertyValue","name":"verification_status","value":"unverified"},{"@type":"PropertyValue","name":"provenance_status","value":"valid"},{"@type":"PropertyValue","name":"evidence_level","value":"ungraded"},{"@type":"PropertyValue","name":"content_hash","value":"eaab83f7f36d9c00707dcf7c467737bad5fbdea2c22e1a28c1d0d8159c83a365"}]}