Chronos uses a dual token model to incentivize different participants to perform different functions in the ecosystem.
Chronos Ecosystem Tokens:
$CHR— ERC-20 Utility Token
$veCHR— ERC-721 Non-Fungible Governance Token
$CHR is Chronos's main utility token, and is used to incentivize users to add liquidity and stake their LP tokens on the platform.
There will be 50 million $CHR tokens available at launch, and more will be emitted into circulation over time. For a full breakdown of $CHR's initial distribution and emissions schedule, please see the relevant entries included in these documents.
Any $CHR holder can vote-escrow their tokens and receive a $veCHR in exchange. $veCHR gives holders the power to vote on the platform's gauges, which control how CHR incentives are distributed to the Chronos's liquidity pools.
The lock period (also known as vote-escrowed period (hence the ve prefix) can be up to 2 years, adhering to the linear relationship shown below:
veCHR positions can be merged, split, and sold on the secondary market.
100 $CHR locked for 2 years will become 100$veCHR
100 $CHR locked for 6 months will become 25$veCHR
Locking veCHR for longer durations confers more voting power.
Gauge Voting: holders can vote for gauges weekly. These determine what pools will be receiving CHR emissions for the following epoch.
Governance Rights: holders can partake in governance and cast votes for protocol improvement proposals. (Governance implementation will take place in the future)
Fee Revenue: voters earn up to 90% of the swap fees generated by the pools voted for each epoch (10% to 20% goes to chrNFT stakers)
Bribe Revenue: voters earn 100% of bribes for the pools voted for each epoch
Users who lock their tokens for longer periods receive more voting power on the gauges.
To promote continuous locking and sustained stakeholder participation, $veCHR voting strength diminishes over time until it reaches zero at the end of the initial lock period. Users must consistently renew their lock duration to preserve voting power, fostering ongoing engagement and active involvement within the Chronos ecosystem.