$VELVET The main token of the Velvet Protocol ecosystem is VELVET. This token plays a crucial role in the operation and governance of the platform, designed for the management of DeFi assets and powered by AI.
Here are its main functions:
* Governance and Voting Rights: Holders of the VELVET token can participate in the decisions of the Velvet DAO (Decentralized Autonomous Organization). This includes voting on protocol development, new integrations, the direction of the ecosystem, and fund allocation.
* Staking and Rewards (veVELVET): By staking your VELVET tokens, you can earn veVELVET (voting escrow VELVET). The longer you keep your tokens locked in staking, the greater your voting rights and the rewards you receive. Holders of veVELVET benefit from a 50/50 revenue sharing model, where protocol revenues are divided between treasury growth and rewards for holders.
* Fee Discounts: Holders of VELVET can access discounts on platform fees, which incentivizes usage and retention.
* Influence on Emission Allocation: Through governance, VELVET holders can also influence how rewards and new token emissions are distributed within the ecosystem.
* Access to Opportunities: The token may grant access to events such as Launchpads and airdrop incentives.
In addition to VELVET, the ecosystem also mentions a token $VU, which is described as the "fuel token" for the AI engine of Velvet Unicorn. It is used to pay the invocation fees of this AI, and a percentage of those fees is burned, another goes to a research and development fund, and another is allocated to veVELVET holders. This aims to create a positive cycle where increased platform usage drives the burning and repurchase of VELVET.
In summary, the VELVET token is fundamental to the economy and decentralization of Velvet Protocol.
