# Token Utility

## **CVE: The Governance Token of Curvance**

The governance token of the Curvance protocol, **CVE**, grants holders the ability to participate in DAO Governance, direct emissions, and influence fee distribution. These governance powers are unlocked by locking CVE tokens to receive **veCVE** via the vote-escrow smart contract.

### **Unlocking Governance Power with veCVE**

Users access voting power by locking CVE for veCVE within the Curvance protocol. The lock period is set for 12 months, with voting power decreasing linearly as the lock approaches its unlock date across each two-week epoch.

* **Governance**: Locking CVE for veCVE enables users to vote on proposals made in the Curvance governance forum, helping shape key parameters and the future direction of the DAO.
* **Direct Emissions**: veCVE holders can vote on biweekly emissions for lending markets, thereby influencing the platform's incentive structure and interest rates.
* **Fee Distribution**: veCVE holders can access a proportional share of platform fees. 

<figure><img src="/files/LzOxXetEVWiwQ27bujGk" alt=""><figcaption></figcaption></figure>

**Boosting veCVE Voting Power**

The Curvance protocol introduces two mechanisms to enhance the voting power of long-term, engaged users, aligning incentives with platform goals:

1. **Continuous Lock**
   * Users can opt for a **continuous lock** to keep their veCVE at maximum lock duration, ensuring consistent voting power without relocking.
   * Users can convert an existing standard lock into a continuous lock at any time, automatically resetting the lock to the maximum lock duration.
   * **Benefits**: Continuous lock users receive a 20% boost to voting power and doubled fee rewards, rewarding long-term DAO participants and frequent platform users.
2. **Bimodal Emissions**
   * When users have unclaimed CVE rewards from gauge emissions, they can choose to lock them immediately as veCVE to receive an additional variable bonus, as determined by the DAO.
   * **Example**: If a user has 100 unclaimed CVE rewards and a claim boost incentive of 20%, opting for the boost would yield 120 veCVE locked for one year.
   * This boost is a one-time option when claiming rewards; boosted tokens can be compounded into an existing continuous lock, added as a new 12-month lock, or compounded into an existing standard lock, resetting the lock duration to 12 months.

{% hint style="info" %}
This is a one-time choice whenever a user has unclaimed rewards. Locking those same rewards after a claim will not yield the bonus veCVE.

The veCVE will always be locked for 12 months whether compounded into a current lock or the creation of a new lock.
{% endhint %}

### **Aligning Long-Term Participation**

These features prioritize long-term participants, providing enhanced rewards and governance power to users who heavily commit to the protocol. This alignment strengthens the vision of becoming the leading DeFi liquidity hub.


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