Staking and Governance

Stake FCTR to receive veFCTR, the token that forms the core of Factor's governance. By holding veFCTR, users get access to a range of ecosystem benefits:

• Eligibility to vote on FactorDAO governance proposals (1veFCTR:1vote) and determine the future of the Factor platform

• Power to influence the distribution of emissions rewards via voting for their favourite strategies on Factor Scale

• Revenue sharing perks whereby 50% of Factor platform revenue is automatically disbursed as FCTR to veFCTR holders

FactorDAO's staking design rewards longer term commitments via leveraging both a staking multiplier as well as an emissions multiplier. The staking multiplier enables FCTR stakers to receive up to a maximum of 1veFCTR:1FCTR by staking for the max duration of 2 years, subject to time-based linear decay of the staking duration. The emissions multiplier rewards longer term stakers by introducing a 2.5x multiplier which is subject to the staking duration, proportion of veFCTR holdings, and strategy liquidity contributions. More info regarding the multipliers can be found on the veFCTR explainer.

Factor will use single choice voting for regular governance processes while Factor Scale rewards will be directed based on a weighted voting process.