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veOLIVE
Participating in OliveDAO governance requires that an account have a balance of vote-escrowed OLIVE (veOLIVE). veOLIVE is a non-standard ERC20 implementation, used within OliveDAO to determine voting power.
A user’s veOLIVE balance decays linearly as the remaining time until the OLIVE unlock decreases. For example, a balance of 4000 OLIVE locked for one quarter provides the same amount of veOLIVE as 2000 OLIVE locked for two quarters, or 1000 OLIVE locked for four quarters.
Due to the fact that OLIVE protects LPs from impermanence loss, it makes OLIVE an attractive place for LPs to park their funds.
Users are able to lock their OLIVE into escrow (for a predetermined amount of time). On locking their OLIVEs into escrow, they receive veOLIVEs. The ratio of OLIVE to veOLIVE is as follows:
Locking Period (Quarters)
veOLIVE per OLIVE
4
1
3
0.75
2
0.50
1
0.25
The process of locking OLIVE for veOLIVE is irreversible i.e. once locked, they can only be redeemed after the locking period is over.

# Implementation Details

User voting power
$𝑤𝑖$
is linearly decreasing since the moment of lock. So does the total voting power
$𝑊$
. In order to avoid periodic check-ins, every time the user deposits, withdraws or changes the lock time, we record the user’s slope and bias for the linear function
$𝑤𝑖(𝑡)$
in the public mapping user_point_history. We also change slope and bias for the total voting power
$𝑊(𝑡)$
and record it in point_history. In addition, when a user’s lock is scheduled to end, we schedule change of slopes of
$𝑊(𝑡)$
in the future in slope_changes. Every change involves increasing the Season by 1.
This way we don’t have to iterate over all users to figure out, how much should
$𝑊(𝑡)$
change by, neither we require users to check in periodically. However, we limit the end of user locks to times rounded off by whole weeks.
Slopes and biases change both when a user deposits and locks governance tokens, and when the lock time expires. All the possible expiration times are rounded to whole weeks to make the number of reads from blockchain proportional to the number of missed weeks at most, not the number of users (which is potentially large).

# Incentives for getting veOLIVE

veOLIVE gives its holders access to participate in five different incentivized activities that non veOLIVE holders are prohibited from:
1. 1.
Earn voting APR's
2. 2.
Share in Fees Generated
3. 3.
Share in Protocol Controlled Assets
4. 4.
Participation in governance (casting a governance vote or creating a governance proposal)
veOLIVE cannot be transferred. The only way to obtain veOLIVE is by locking OLIVE. The maximum lock time is four quarters.
Our unique tokenomics structure allows us to reward LPs & LDs with sustained and lucrative yields while also dramatically eradicating impermanence loss.