ISS and veISS Tokens

The ISSUAA Protocol Token (ISS) serves as the native token of the ISSUAA protocol. By locking ISS tokens, users can create veISS tokens, which function as both governance and utility tokens within the ISSUAA protocol. ISS Tokens have three primary possible applications:

  1. Governance Voting Power: veISS tokens form the foundation of users' voting power in the governance process. These votes encompass:

  • Voting on whether an asset has exceeded its upper limit and should be frozen ("Freeze Votes").

  • Voting on the price of an asset at the time of its expiry ("Expiry Votes").

  • Voting on grants for services provided by users who contribute to the success of the ISSUAA protocol ("ISSUAA DAO Grant Votes").

  • Voting on whether new assets should be allowed to be created ("New ISSUAA Asset Proposal Votes").

  • Voting on ISSUAA protocol upgrades ("Upgrade Votes").

  1. Trading Commission: A trading commission of 0.05% is imposed by the protocol on each trade conducted on the internal ISSUAA marketplace. This commission is used to repurchase ISS tokens.

  1. Voting Rewards: Rewards for voting are distributed in the form of liquid ISS tokens.

How to mint veISS Tokens

To mint veISS tokens, a user must voluntarily lock their ISS tokens. Generally, the longer the ISS tokens are locked, the more veISS tokens are minted. The maximum locking period is 4 years. When ISS tokens are locked for 4 years, the ISS to veISS ratio is 1 to 1. The relationship between the remaining lock time and the ISS to veISS ratio is linear. For instance, if tokens are locked for 1 year, the ISS to veISS ratio will be 4 to 1. Additionally, as the lock duration decreases over time, the quantity of veISS tokens gradually decreases.

Users can increase the number of veISS tokens by extending the lock time or increasing the number of tokens locked at any time. After the lock time expires, users can redeem the full amount of locked ISS tokens.

This "voting escrow" concept, popularized by Curve Finance, grants greater voting power (and rewards) to users who believe in the protocol's long-term success and have a more significant stake in it compared to users who do not lock their ISS tokens.

Where to trade the ISS token:

You can trade the ISS token either on the internal market on app.issuaa.org or on third-party marketplaces. Compare the available options to secure the best price.

Last updated