Tokenomics

Rooster Protocol uses two tokens to manage its utility and governance:

1. ROOSTER — ERC-20 utility token of the protocol.

2. veROOSTER — ERC-721 governance token in the form of an NFT (non-fungible token).

ROOSTER: The Utility Token

ROOSTER is distributed to liquidity providers as emissions, incentivizing liquidity provision and driving ecosystem growth.

veROOSTER: The Governance Token

veROOSTER is used for governance and is created by locking ROOSTER tokens. Any ROOSTER holder can vote-escrow their tokens to receive veROOSTER (also known as a Lock or veNFT) in exchange. Additional tokens can be added to an existing veROOSTER veNFT at any time.

The lock period, also known as the vote-escrowed period, can range up to 4 years. The veROOSTER received per lock is computed following this relationship:

veROOSTER = r * min(duration, 1) * 2 ^ timeDiff r = ROOSTER tokens staked duration = lock length (years) timeDiff = lockEnd - startTime (years) startTime = beginning timestamp of contract lockEnd = now + duration The longer the lock period, the greater the voting power (voting weight) associated with the locked balance.