# veLDY Voting

veLDY is the **governance layer** of the Ledgity protocol.\
When users stake LDY, they receive a **veNFT** representing their **voting power** and **economic participation** in the protocol.

This model ensures that **those who commit long-term** have **stronger influence** over protocol decisions.

***

### **What is veLDY?**

| Property                                   | Explanation                                           |
| ------------------------------------------ | ----------------------------------------------------- |
| **veLDY = Voting Escrow LDY**              | A non-transferable representation of staked LDY       |
| **Issued as a veNFT**                      | Your staking position is stored on-chain as an NFT    |
| **Voting Power scales with lock duration** | Longer lock → more governance weight                  |
| **Accrues buyback yield**                  | veLDY receives distributions from real-yield buybacks |

veLDY cannot be sold or traded — it represents **commitment**, not speculation.

***

### **Voting Power Formula**

Voting weight is determined by:

```
Amount of LDY locked × Lock Duration Multiplier
```

Longer lock = more influence + larger share of buyback rewards.

***

### **What veLDY Holders Vote On**

veLDY stakers govern **all key protocol decisions**, including:

| Category                      | Examples                                             |
| ----------------------------- | ---------------------------------------------------- |
| **Yield Parameters**          | Performance fee rate, liquidity buffer ratio         |
| **Treasury Allocation**       | Incentives, partnerships, liquidity deployments      |
| **Vault Listings**            | Approval of new RWA strategies or network expansions |
| **Burn / Distribution Split** | Decide how buybacked LDY is allocated                |

> **Stakers (veLDY) are the DAO.**\
> The DAO sets direction. The Council executes it.

***

### **Voting Process**

1. **Discussion** starts on governance forum (or community call)
2. A formal proposal is drafted following the Proposal Template
3. Proposal is submitted to **Snapshot**
4. veLDY holders vote off-chain (gasless)
5. If approved, the **Council executes the decision on-chain**

```
Forum → Proposal → Snapshot Vote → Council Execution → On-Chain Result
```

***

### **Economic Alignment**

veLDY ensures that **those who benefit from protocol growth are the same people who guide it.**

| Stakeholder                 | Benefit                                               |
| --------------------------- | ----------------------------------------------------- |
| **Long-term stakers**       | Earn yield from buybacks + shape the protocol         |
| **Short-term participants** | Can still use vaults, but do not influence governance |

This prevents short-term liquidity from influencing long-term strategic decisions.

***

### **In Summary**

| Principle                            | Outcome                                              |
| ------------------------------------ | ---------------------------------------------------- |
| Commitment = Influence               | Governance power reflects long-term alignment        |
| veLDY is non-transferable            | Governance cannot be bought temporarily              |
| Voting controls real economic flows  | Stakers direct how value is captured and distributed |
| Governance is transparent & on-chain | No closed decision-making                            |

> **veLDY makes Ledgity a community-directed protocol — not a company-controlled product.**