> For the complete documentation index, see [llms.txt](https://docs.factor.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.factor.fi/governance/factor-scale/faq-factor-scale.md).

# FAQ - Factor Scale

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<summary>What is Factor Scale?</summary>

Factor Scale is a governance mechanism for [veFCTR](/governance/fctr-token.md#vefctr) holders, allowing them to vote on the allocation of Scale rewards to various strategies on a weekly basis.&#x20;

To ensure equitable distribution of emissions, Factor Scale implements TVL milestones whereby every subsequent TVL target achieved unlocks more [FCTR](/governance/fctr-token.md#fctr) rewards in the next epoch.

More info can be found on our [Factor Scale](/governance/factor-scale.md) Docs.

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<summary>What are the advantages of Factor Scale?</summary>

The system offers decentralized governance, stimulating community engagement through governance objectivity and efficiency. It also provides strong incentives for [veFCTR](/governance/fctr-token.md#vefctr) holders through significant [esFCTR](/governance/fctr-token.md#esfctr) allocations.

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<summary>How does voting work in the Factor Scale system?</summary>

Voting is community-driven and weighted, meaning [veFCTR](/governance/fctr-token.md#vefctr) holders can spread their votes across multiple strategies. The voting process is detailed [here](/governance/factor-scale.md#voting-process).

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<summary>What is the duration of the voting period?</summary>

The voting period lasts throughout the weekly epoch, providing ample time for stakeholder participation.

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<summary>How does voting influence Scale reward allocation?</summary>

Voting with [veFCTR](/governance/fctr-token.md#vefctr) influences how weekly Scale rewards are allocated among different vaults. The percentage of votes a vault receives directly impacts its share of the rewards.

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<summary>How do Scale reward mechanics work?</summary>

Stakeholders use their [veFCTR](/governance/fctr-token.md#vefctr) to vote on the allocation of weekly Scale rewards across different vaults. The rewards a vault receives depend on its share of the total votes. The mechanics involve:

* Higher [veFCTR](/governance/fctr-token.md#vefctr) holdings leading to increased individual rewards.
* Reward variance based on weekly voting outcomes.
* A multiplier effect on rewards for [veFCTR](/governance/fctr-token.md#vefctr) holders (e.g., a 2.5x multiplier depending on vault participation).

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<summary>Why do weekly vault rewards vary?</summary>

Weekly vault rewards vary based on the outcomes of the [voting process](/governance/factor-scale.md#voting-process) as well as [emission milestones](/governance/factor-scale.md#fctr-emission-milestones), reflecting the community's consensus on which vaults should receive more or less of the total rewards.

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<summary>What is esFCTR and its vesting mechanism?</summary>

Scale rewards are distributed as [esFCTR](/governance/fctr-token.md#esfctr), which are non-transferable and non-tradeable. It can be converted to FCTR on a 1:1 ratio over a 90-day vesting period, aimed at reducing sell-pressure and promoting long-term engagement. Vesting can be claimed at any time based on total time vested and is irreversible once initiated.

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<summary>Is there flexibility in claiming Scale rewards?</summary>

Yes, claiming rewards is flexible and can be done at any time, allowing stakeholders to choose when to receive their rewards.

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<summary>Are there any benefits for non-veFCTR holders?</summary>

Non-veFCTR holders still receive rewards, but at a lower rate compared to [veFCTR](/governance/fctr-token.md#vefctr) holders.

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<summary>How can users engage with Factor Scale?</summary>

To participate in Factor Scale rewards, you can find a step-by-step guide [here](/governance/factor-scale.md#how-to-use-factor-scale).

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