# Vote

## ve(3,3) model

The ve(3,3) model is a governance and tokenomics framework designed to balance token emissions, incentivize participation, and enhance liquidity in decentralized finance (DeFi) protocols. It combines vote-escrowed tokens (ve), where users lock their utility tokens (e.g., SDX) to receive veTokens (e.g., veSDX) with governance rights, and (3,3) game theory, which encourages cooperative, long-term commitment for ecosystem stability.

### How It Operates  <a href="#how-it-operates" id="how-it-operates"></a>

The amount of veTokens (e.g., veSDX) received depends on the quantity of tokens locked (e.g., 100 SDX) and the duration of the lock (e.g., 1 year). Longer lock durations yield higher voting power.

This model enables veToken holders to vote on gauges that direct emissions to specific liquidity pools, ensuring efficient allocation and aligning incentives with ecosystem needs. Emissions are dynamically adjusted based on governance decisions, promoting sustainable growth and controlling inflation.

Additionally, veToken holders earn a share of trading fees (all fees are directed to voters) and bribes, enhancing their utility and engagement. This structure helps attract more liquidity providers through SDX emissions, further strengthening the ecosystem.

## Voting

$veSDX holders decide which liquidity pools receive $SDX emissions. In return, voters receive 100% of the trading fees and incentives collected from the liquidity pool they vote for.

## Instructions

Distribute 100% of your Lock's (veNFT) vote-power among your preferred pools and Cast your vote. Repeat for each of your Locks (veNFTs). Unallocated vote-power (if < 100%) will be split proportionally among the selected pools. Each Lock (veNFT) can only cast votes once per epoch.

If you increased your Lock's (veNFT) balance during the epoch, recast your vote to allocate your vote-power in full. Unchanged votes carry over into the next epoch.

### veSDX Voting Mechanism

Voting operates on a weekly cycle called an Epoch, which resets every 7 days. At the end of each Epoch, rewards are distributed exclusively to veSDX holders who have voted for specific gauges (liquidity pools).

You earn revenue only from the pools you actively voted for during that Epoch. Remember that once you vote from a lock, that lock continues to vote on the same pools with the same allocation percentages automatically in every epoch until you decide to reset the lock. Trading fees and voting incentives are claimable as a lump sum after each Epoch concludes.

## Timeline

Votes for the next epoch, are due by **Wednesday at 23:00 UTC**, **1 hour before next epoch begins**. During the following **two hours**, no voting operations will take place as this time is reserved for protocol operations/automations.

### Rewards

Voting rewards for a given epoch will appear in your Portfolio after the epoch change on **Thursday at 00:00 UTC**. Rebase rewards for new locks will appear after the second epoch change.
