BAL has jumped 11.2% after DeFi protocol Balancer hinted at adopting a vote-escrowed tokenomics model that enables users to lock up tokens and receive pegged equivalents.
If the proposal is passed, veBAL would be the main asset used in the project’s future proposals and may increase the demand for BAL tokens.
Balancer users must acquire Balancer Pool Tokens, issued to liquidity providers, from BAL/ETH pool to receive veBAL
Balancer Labs CEO and co-founder, Fernando Martinelli, notes that the vote-escrowed system would improve existing tokenomics from where holders can only stake their tokens to take part in governance.
Martinelli says that the model, largely borrowed from Curve finance, is ideal for Balancer. Curve launched VE tokens to give holders extra yield and a means to vote on governance.
Yearn Finance is another decentralized protocol that recently implemented a vote-escrowed system for its YFI token.
Source: Cryptobriefing
