VoteEscrow Model

Curve Finance has introduced a governance model in which token holders can lock up their governance tokens (e.g. CRV) for a predetermined period of time in exchange for vote escrowed tokens (e.g. veCRV). The length of the lock period can range from one week to four years, and the longer the tokens are locked, the more voting power is issued to the holder as a reward for their loyalty. During the lock period, the locked tokens are not able to be sold or unstaked. However, the locked tokens do decay linearly over the course of the lock period, and holders can periodically relock the decayed tokens to extend their lock period and earn the maximum rewards and governance rights.

In addition to receiving voting power, holders of veCRV tokens also receive other perks, such as the ability to select a pool to receive boosted CRV emissions and a share of protocol fees paid in CRV. They also have the ability to vote weekly on the allocation of CRV emissions and on governance proposals.

Overall, this governance model is designed to encourage long-term commitment from token holders by rewarding them with voting power and other perks based on the length of time they lock their tokens. It also provides some flexibility for token holders, as they can periodically relock their tokens to extend their lock period and earn the maximum rewards.