Utility
Acquiring and locking $FCTR for more $veFCTR increases revenue share, but also increases voting rights. Voting may be used to direct treasury emissions and potentially to adjust fee structures.
Acquiring significant voting power may create opportunities for participants to direct voting and emissions that are beneficial to their objectives. Other parties may offer incentives for voting in a certain direction.
In general, this should create a competitive environment to the benefit of the Factor ecosystem. However, the Factor model and focus remain on the long-term sustainable development of the ecosystem, with the objective of the DAO being incentivized to vote in a direction that is net positive to the business model.
Last modified 3mo ago