The VeChain ecosystem has seen significant developments. Their first decentralized exchange (DEX) in collaboration with AMM will launch a new token in its ecosystem, called governance token.
DEX also announced that they will be launching Yield farming which will be implemented at the same time as the governance token launch, on November 9.
Launched in 2019, VeChain VEX is one of the pioneering protocols in the DeFi sector with a thriving community since its inception.
Throughout its history, the team behind the project has tried to maintain a focus on the user and progressively, making improvements to the platform so visible.
The launch of their second iteration is a major milestone in modernizing the protocol and giving the community more power to determine its future.
The launch of the governance token, as the VeChain and DEX teams say, is part of the next step towards becoming a fully decentralized platform.
Users will be able to choose to change DEX fees, to integrate new trading pairs, change models on token governance, and much more.
DAO Comes Support VeChain
As the team revealed, the governance of the VEX token will be distributed to all community members who trade or provide liquidity in their first iteration.
In addition, users will be able to earn through the liquidity program for VEX/VET pairs.
“The first 30 days will be run by the Vexchange team, but after that token governance will control rates and pairs.” Says a representative from VeChain.
The retroactive airdrop snapshot will be taken at a block height of 9 million. 2 million VEX will be allocated with 320 VEX sent to each address.
The amount of VEX allocated through liquidity mining will reach 2 million with an additional million VEX for the swap function.
Similar to other governance token debuts with the LP program, users will receive VEX depending on the volume/value of their dollars staked on the platform.
The governance token will have a total supply of 100 million to be allocated to the 50 million DAO treasury with a 2 year vesting.
While the rest is there, 20 million for founders with 2 years vesting, 20 million for future team members also with 2 years vesting, 5 million for airdrops, and the last 5 million for LP programs both without vesting.
“The idea behind token allocation is to get the majority of the initial tokens in the hands of community members and let them circulate in preparation for the governance module.” Obviously the DEX representative team.
After November 9, with the launch of VEX via airdrop and liquidity mining, the team will focus on rolling out the governance model. And next year, users should be able to vote on decisions and proposals with a voting system.
As of press time, VeChain is trading at $0.13 on a downtrend with the rest of the crypto market.