Hello hello Shiners,
Today is the day we became vote-escrowed (ve) token-style species. With a goal to allocate more voting power and more benefits to committed long-term holders of SHN, we are excited to announce veSHN.
veSHN is the new non-transferable governance token of ShineDAO. Its vesting and yield system is based on Curve’s veCRV and Frax’s veFXS mechanism.
SHN holders can now lock their SHN for a maximum of 4 years and get benefits proportional to their lock time. veSHN decays slowly over the locking period, eventually reaching 1–1 with locked SHN, at which time the users can redeem the veSHN back for SHN.
Users can also get additional veSHN by locking more SHN or extending the lock period.
1 $SHN + 4-year lock = 4 $veSHN, decaying to 1 $SHN
With a focus on sustainability, our APR is initially reflecting only the yield generated by the treasury and will be increased with successful SEED and SWAP events, to reflect the progress in the community and reward all the stakeholders. Please find more info in our docs.
veSHN is launched on Polygon (Matic) Network. Users with SHN on Ethereum Mainnet should bridge their SHN to Polygon Network. All required steps are described in this article:
Why max lock SHN?
1. Discounted SEED access
veSHN acts as an access token for SEED. Users can get up to 75% discount on the SEED access with a 4-year lock.
2. Boosted SHN yield
veSHN holders are eligible for sustainable SHN yield coming from buyback (SEED fees + treasury yield). The individual distribution weight of the amount locked depends on the lock duration. Users get up to 4x weight with a 4-year lock.
3. Boosted project token distribution
veSHN holders are eligible for vested token distributions from SWAP. The individual distribution weight of the amount locked depends on the lock duration. Users get up to 4x weight with a 4-year lock.
4. Higher governance power
Each veSHN has 1 vote in governance proposals. Staking SHN for a maximum time (4 years) generates 4 veSHN and up to 4x voting weight on your SHN.
How to lock SHN?
Given that you already have SHN on your Polygon (Matic) Network, you can proceed on the page below:
1. Lock
Enter the amount you want to lock and select the lock time. You will be able to see your initial veSHN balance. After approving a lock, you will be able to create a lock.
2. Stake
In the staking section, you will be able to see base and max APR along with other relevant info. Base APR is representing reward for minimum lock (7 days), and max APR is representing reward for maximum lock (4 years).
Please click “STAKE” to make sure your veSHN is eligible for rewards from rewards contracts.
3. Claim
In the claim section, you will be able to see your rewards and claim them.
4. Withdraw
Withdraw will allow you to exchange your veSHN for SHN once the lock expires. The button will appear once the lock expires.
5. Increase veSHN balance
To increase your veSHN balance you can either lock more SHN or increase the lock.
It should be noted that each account can only have a uniform lock time: A single address cannot lock certain SHN tokens for 2 years then another set of SHN tokens for 4 years etc.
About ShineDAO
ShineDAO is a self-govern community on a mission to fund and support the most promising Web3 & DeFi innovators. Complete the onboarding to learn more about getting involved with our projects.
