RWA Finance recently announced the launch of their VE governance series products, introducing VE governance to the RWA field. Users can acquire veToken by locking RWAS in the VE pool, granting them community governance rights and token emission benefits.
The VE governance model offers a token economics system that balances token supply and liquidity. veRWAS serves as a non-transferable community governance token in the RWA Finance ecosystem, allowing holders to propose and vote on token emission policies. The RWA Finance VE governance ecosystem provides a range of products such as VE Pool, LP Pool, Community Vote, and Swap to meet the community’s governance and value capture needs.
The VE governance model benefits RWAS by empowering coin prices, providing community autonomy through democratic voting, decentralizing minting rights, offering DeFi 2.0 mining opportunities, and facilitating flexibility in interest coordination. The model aims to distribute tokens to more users while increasing token value and fostering community participation.
The value capture mechanism of the VE governance model is based on veToken, which is influenced by lockup amount and duration. Large nodes need to increase their lockup amount and extend the lockup period to maintain voting rights and interest shares. Retail investors, on the other hand, can still enjoy similar benefits with smaller stakes and participate in decision-making processes.
Participants in the VE governance model can earn rewards through LP Pool rewards, VE Pool rewards, and VE Governance Emission rewards, leading to increased liquidity and value capture opportunities. RWA Finance aims to scale its growth by providing users with access to premium RWA assets, improving user experience, enhancing LP liquidity, and attracting more RWA assets.
As the first RWA project to utilize the VE model, RWA Finance aims to bridge traditional finance and decentralized finance. The VE model allows for continuous scaling, adjusting incentives, and generating strong network effects to capture monopoly revenues in niche segments. The rich product models offered by RWA Finance, such as RWA asset trading, equity NFTs, Stake, and Launchpad, will attract more users and RWA project parties to join the ecosystem, solidifying RWA Finance’s position as a leading RWA project.
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