veBANK: The Most Underestimated Governance Token Flywheel of 2025
While countless governance tokens have become 'air', Lorenzo Protocol has quietly built one of the most hardcore positive flywheels in the crypto world: the veBANK economic model.
The mechanism is simple yet extremely fierce:
1. 70% of the protocol's total revenue (management fees + performance commissions) is directly used for market repurchase of $BANK;
2. The repurchased BANK is 100% allocated to a 'national treasury vault' with a linear release over 12 months, and only veBANK holders can claim it proportionally;
3. The longer the lock-up period, the higher the claim multiplier, up to 4 times over a maximum period of 4 years.
This means that as the OTF management scale grows, the repurchase intensity will increase exponentially, and only long-term locked veBANK holders will truly benefit from the repurchase dividends. Short-term speculators can only watch helplessly as their chips are diluted by long-termists.
Currently, the protocol has launched 8 vaults, with AUM exceeding $420 million, monthly management fee income of approximately $4 million, translating to an annualized repurchase amount of over $30 million. With more top quantitative teams lining up to connect (3 CTA teams with annualized returns exceeding 30% are already under audit), an AUM of $5 billion in 2025 is not a fantasy; by then, the monthly repurchase amount will reach an astonishing $8 million to $10 million.
When repurchases become rigidly fulfilled and claiming requires long-term locking, veBANK will become one of the few governance tokens that truly achieve 'locking equals getting rich'.
