# veKOI

The native Koi token, KOI, functions as a utility towards unlocking accessibility into the Koi DAO, which is a locked based vote system based on a ve NFT model, **veKOI** (Vote Escrow Locked Koi). This veNFT can be transferred, sold, and eventually burned for the underlying koi it owns once its lock period is expired. \
\
This lock based system requires **KOI** holders to lock their **KOI** for a period of time (**7- 728 days**), and in return receive a new NFT, **veKOI**. This **veKOI** NFT is custom NFT for every user who locks their Koi  in return of a veNFT. The NFT holds 3 important metadata variables:\
\
\- Underlying Koi Amount locked (for future redemptions)\
\- Total vote share weight\
\- Expiry date\
\
After the lock period is expired, you are able to redeem and burn your **veKOI** NFT back to your original **KOI** balance, continue to hold your **veKOI**, or redeem & re-up a different time lock.\
\
**Specifications** \
\
Minimum lock time:  7 days\
Maximum lock time: 728 days \
Increment of lock period: 7 days\
\
The exchange rate of **KOI** to **veKOI vote shares** is a linear function of the time lock and amount of KOI being locked:

$$
f(voteshare) =  KOI \* (timelock / (maxlocktime / 2))
$$

An example: Locking 12500 Koi for 54 days would result in owning a **veKOI** NFT with the following specifications:\
\
\- Underlying Koi Amount: **12500**\
\- Total vote share weight: (12500 \* (56/(728/2)) \~= **1923**\
\- Expiry date: 54 days from the lock time<br>

{% hint style="info" %}
Remember, owning a **veKOI** NFT grants you the ability to delegate your **veKOI** voteshare to other addresses. By default, it is delegated to you - but in the chance you delegate it to another address, you are giving up all utility that the DAO offers. Each individual **veKOI** NFT can be delegated to a different address.&#x20;
{% endhint %}

**veKOI** vote utility:

* Dictates a users Amplifier Boost of a Amplifier Pool
* Modifications to the AMM protocol fee (0.1% currently, can be fixed or dynamic depending on pair)
* Creation of additional [Amplifier pools](https://docs.koi.finance/mute-switch/amplifier) and reward distributions&#x20;
* Creation of additional [Bond Offerings](https://docs.koi.finance/mute-switch/bonds) and distributions
* Ownership over the protocol treasury
* All Koi DAO utility

**veKOI** available custom functionality:

* Split **veKOI** into smaller **veKOI** NFTs
* Merge two **veKOI** NFTs into one
* Increase **veKOI** lock period to a greater one