Deep Dive into veBANK: The Voting Escrow System of the Lorenzo Protocol
veBANK (Vote-Escrowed BANK) is an innovative mechanism in the governance model of the Lorenzo Protocol. Users obtain veBANK by locking (staking) their native $BANK tokens. The amount of veBANK and the user's voting weight are proportional to the amount staked ($BANK ) and the duration of the lock-up, which is a design that encourages long-term holding and deep participation in governance. Holding veBANK not only grants users significant voting power over protocol parameters and future proposals, but more importantly, it allows users to participate in sharing the revenue generated by the protocol. This means that those who have the most confidence in the protocol and are willing to lock their assets for the long term will receive greater economic returns and influence. The veBANK model effectively addresses the issue of 'short-term speculators', ensuring that governance power of the protocol is in the hands of community members who are most beneficial to the long-term development of the project.
