A 6 Month Lock

A new mechanism to reward active voters

Through a 6 month lock Fenix will be able to selectively reward the most active voters and re-lockers with a higher voting APR over time. We wanted to find increased efficiency within the Soldily model and to give the most productive users more rewards. Due to a shorter lock time, max locked veFNX (26 epochs) experiences accelerated decay. This means that if you don’t relock every week, your voting power and revenue will reduce by 4% every epoch.

The image above illustrates that veFNX holders who vote and relock every week are guaranteed to receive a higher voting APR over veFNX lockers who don’t relock and vote. A loss of voting revenue is minimal in locking systems that have long lock periods and discourages active participation on the platform. A shorter time is also a much lower barrier for entry into the ecosystem and will give users and protocols a more tangible and attractive means to participate in governance. A 6 month lock is a significant improvement in incentives for lockers by rewarding the best contributors to the voting ecosystem and encourages consistent relocking. This also leads us into the Fenix Nest (read on), a voting optimiser and reward autocompounder that maintains maximum voting power over time to maximise rewards and removes the need for users to vote and relock every week.