# Membership program

The Ledgity Protocol uses a **veToken (vote-escrowed)** staking model to align long-term incentives between users, governance stewards, and the protocol’s economic growth.

When users **stake LDY**, they lock it for a chosen duration and receive a **veNFT** that represents:

* **Voting Power** in governance
* **Share of protocol buybacks**
* **Utility boosts** inside the protocol (priority withdrawals, yield boosts, etc.)

The longer the lock → the higher the **veLDY weight** → and the larger the share of rewards.

***

### **How veLDY Works**

| Action                                   | Result                                              |
| ---------------------------------------- | --------------------------------------------------- |
| Stake LDY                                | Receive a veNFT position                            |
| Choose lock duration (e.g., 1–24 months) | Lock duration increases veLDY weight                |
| Hold veNFT                               | Earn a share of BUYBACK rewards + governance rights |

veLDY **does not** inflate or mint new tokens.\
Value accrues through **real yield → buybacks → reward distribution**.

***

### **Dual Pool Reward System**

The protocol distributes bought-back LDY into **two separate staking pools**.

| Pool                     | Allocation                  | Beneficiaries                                | Purpose                                                                |
| ------------------------ | --------------------------- | -------------------------------------------- | ---------------------------------------------------------------------- |
| **veLDY Community Pool** | **80%** of all LDY buybacks | Users who stake LDY                          | Rewards aligned community participation & long-term commitment         |
| **veLDY Council Pool**   | **20%** of all LDY buybacks | Governance stewards & strategic contributors | Sustainable funding for protocol oversight, partnerships & development |

This structure ensures:

* **Users receive the majority of value** created by the protocol
* **Governance is sustainably incentivized**, without requiring inflation or forced token sales\
  \
  **What veLDY Unlocks**

  | Benefit                           | Description                                                     |
  | --------------------------------- | --------------------------------------------------------------- |
  | **Part of the Buybacks**          | Earn yield sourced from *real economic activity*, not inflation |
  | **Governance Voting Power**       | Propose / vote on protocol upgrades, fees, treasury usage       |
  | **Priority Withdrawals**          | Higher queue ranking in withdrawal scheduling                   |
  | **Boosted Yield Access**          | Required to use boosted vaults & future leverage strategies     |
  | **Eligibility for Council Roles** | veLDY stakers can be elected to governance committees           |