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.

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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.

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Voting Power Formula

Voting weight is determined by:

Amount of LDY locked × Lock Duration Multiplier

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

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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.

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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

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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.

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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.