10.2 Role of veLQDTY Tokens for Voting Rights

LQDTY implements a voting escrow (ve) model, where token holders lock their LQDTY tokens to receive veLQDTY tokens, which grant them governance rights. This mechanism aligns governance power with a long-term commitment to the ecosystem.

How veLQDTY Works:

• Locking Mechanism: Users must stake LQDTY tokens for a fixed duration to receive veLQDTY tokens.
• Voting Weight: The longer users lock their tokens, the greater their voting power in governance decisions.
• Staking Benefits: Users who lock their LQDTY tokens earn additional staking rewards while participating in governance

By using voting escrow tokens, LQDTY prevents governance attacks from short-term speculators and ensures that only long-term participants influence decision-making