> For the complete documentation index, see [llms.txt](https://vine-money.gitbook.io/vine-money/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://vine-money.gitbook.io/vine-money/governance/staking-weight.md).

# Staking Weight

Vine Money introduces a comprehensive staking weight mechanism, centered around staking the native VINE token for veVINE. This system enhances user participation in governance decisions, reward boosts, and revenue share, whilst simultaneously helping to stabilize the protocol's overall ecosystem. 

## **How Staking Weight Works**

* **Token Locking**: Users can stake their VINE tokens for veVINE, for a specified duration, ranging up to 52 weeks. This lock period is crucial as it directly influences the user's staking weight.
* **Multiple Locks and Adjustments**: Each user can create multiple locks with varying durations, with the ability to extend, split or merge locks as and where required.
* **Weekly Decay of Lock Duration**: The lock duration reduces by one week every Friday, moving closer to the unlock date.
* **Calculating Staking Weight:** Each locked token contributes to the total staking weight based on its lock duration and amount. Staking weight is calculated using the following formula:

$$
\text{Lock Weight} = \sum (\text{Weeks} \times \text{Balance}) \text{ For Each Locked Token}
$$

## **Lock Freezing and Unfreezing**

* **Freezing Option**: Users can freeze their lock weight, extending all active locks to 52 weeks. While frozen, the time-to-unlock does not decay.
* **Benefits of Freezing**: Freezing is particularly beneficial for users who do not intend to withdraw their tokens and wish to maintain a consistent staking weight, reducing gas costs in the process.
* **Unfreezing**: A frozen lock can be unfrozen, after which the lock weight begins to decay weekly as per the standard methodology.

## **Exiting Staked Positions Early**

* **Withdrawal Fees:** Users can exit locked positions early, incurring a withdrawal fee. This fee is proportional to the weeks remaining until unlock, decreasing linearly.

$$
\text{Fee Amount} = \left(\text{Total Amount} \times \frac{\text{Weeks To Unlock}}{52}\right)
$$

* **Withdrawal Fee Distribution:** Withdrawal fees are collected by the protocol as a source of revenue, and redistributed as per the revenue share structure. 

## **Impact of Staking Weight**

* **Governance Influence**: The staking weight of a user's locked VINE tokens determines their voting power in governance proposals, aligning user incentives with the long-term health of the protocol.
* **Emission Voting**: Staking weight also influences the distribution of protocol emissions, allowing users to direct where incentives are most needed.
* **Optimized Rewards:** Staking weight also plays a role in defining a users rewards boost, and share of protocol revenue.


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