💰Tokenomics

Starmaker uses two tokens to manage its utility and governance:

  • $STAR — ERC-20 utility token of the protocol

  • $veSTAR — ERC-721 governance token in the form of an NFT (non-fungible token)

$STAR is used for rewarding liquidity providers through emissions.

$veSTAR is used for governance. Any $STAR holder can vote-escrow their tokens and receive a $veSTAR (also known as veNFT) in exchange. Additional tokens can be added to the $veSTAR NFT at any time.

The lock period (also known as vote-escrowed period, hence the ve prefix) can be up to 4 years, following the linear relationship shown below:

  • 100 $STAR locked for 4 years will become 100 $veSTAR

  • 100 $STAR locked for 1 year will become 25 $veSTAR

The longer the vesting time, the higher the voting power (voting weight) and rewards the $veSTAR holder receives.

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