The Curvance DAO is the governing entity of the Curvance protocol and is controlled by the holders of veCVE.
Voting power from veCVE is aggregated from all chains supporting the token and accumulates voting power of all locks across all supported chains. The more veCVE voting power a given user has, the stronger that user's voice will be within the DAO.
The goals are a democratic, transparent, decentralized, strategic decision-maker involving stakeholders and incentivizing participation and contribution.
The DAO can direct structural changes to the protocol through DAO proposals. Any member of the DAO can offer a proposal to improve the Curvance protocol. Proposals may be offered via a public forum to facilitate discussion between token holders and to collect feedback. Once a quorum is reached on the forum, an official proposal and voting process is initiated on Snapshot.
Here are some examples of topics that are related to governance proposals:
Expenditures
Treasury
Fees, features, and functionalities
Security
Protocol parameters
Other topics
Gauge Emissions allow approved Curvance pools to receive continuously streamed CVE rewards decided by the DAO.
We have explained this model in detail under Multichain Gauge System.
The CVE token can be converted to veCVE via the vote-escrow smart contract, which follows a modified voting escrow model. This means that CVE can be locked up for a period of time (12 months) to gain access to DAO voting and other benefits.
However, the locking mechanism varies from conventional methods, allowing for only a single duration of one year. Like many other systems, token voting power decreases linearly as the lock matures. We have also solved the issue of needing to constantly relock for maximum voting power with the "Continuous Lock" function. This function allows a user to keep their veCVE position at a full-duration lock that can be enabled or disabled at any time and even provides a modest boost to voting power.
By locking CVE as veCVE, a user will earn platform fees, voting power for gauge emissions, and potentially even bribes.
Note: While on "Continuous Lock," a veCVE position will stay continuously at a full 12-month lock. This can be disabled anytime, allowing the lock timer and voting power to decrease linearly. It can also be re-enabled at any time, which will boost the lock duration back to full length and re-enable the boost to voting power. A user can do this an unlimited number of times.
Users can also opt into combining and condensing their locks; this re-extends the locks back to max duration and cleans up a user's UI/UX interface.
Rewards will be distributed proportionally to holders of veCVE. For example, if there is 100 CVE in existence and 10 of them have been locked into veCVE, and you own 1 of those locked tokens, you would earn 15% of all fees generated on the platform.
Using Wormhole, Curvance has enabled the option for users to move their CVE and veCVE tokens from one chain to the other.
This has multiple benefits:
Make use of lower TX fees.
Make use of faster block times.
Tokens will never be stuck on one chain.
Example: Timothy locked CVE for veCVE in the continuous lock on Ethereum. He did this at a time when gas prices were low; now gas prices are high.
Thanks to the versatility of Curvance, Timothy is able to use the migration service to move his locked veCVE from Ethereum to Arbitrum, where he is able to enjoy lower transaction fees and faster block times.
The migration service allows for flexibility and consistency. Users can choose where to store and use their veCVE based on their preferences, whether for lower transaction fees, better security, or deeper liquidity.