# Lock

## Tokenomics

* `$SDX` — ERC-20 utility token of the protocol
* `$veSDX` — ERC-721 governance token in the form of an NFT (non-fungible token)

`$SDX` is distributed to liquidity providers who stake their LPs through emissions.

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

## Lock

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 `$SDX` locked for 4 years will become 100 `$veSDX`
* 100 `$SDX` locked for 2 years will become 50 `$veSDX`

The longer the lock time, the higher the voting power (voting weight). When you lock `$SDX` tokens, you receive a veNFT , which represent your voting power and claim on protocol revenue.

* The `$veSDX` amount is calculated based on both the number of tokens and the length of the lock. For example, locking 100 tokens for 4 years may grant you 100 `$veSDX`, while locking the same 100 tokens for 2 years might only give you 50 `$veSDX`
* This means that, with the same token amount, a longer lock duration always results in more `$veSDX` voting power and thus a larger share of the protocol's revenue

### Merge

Merging two locks will choose the longest lock time of the two and will increase the final Lock (veNFT) voting power by adding up the two underlying locked amounts based on the new lock time.

{% hint style="warning" %}
Merging will reset all rewards and rebases before continuing. This action will get you lost all of them, so please ensure you have reviewed and claimed all available rewards.
{% endhint %}

### Transfer&#x20;

Lock can be transferred to other wallet.

{% hint style="warning" %}
Transferring a lock will also transfer any rewards and rebases. Please ensure you have claimed all available rewards before continuing.
{% endhint %}

{% hint style="success" %}
You could increase the Lock amount, extend the Lock time, merge or transfer the Lock at any time after.
{% endhint %}
