> For the complete documentation index, see [llms.txt](https://viridian-hub.gitbook.io/viridian/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://viridian-hub.gitbook.io/viridian/viridian-exchange/tokenomics/model.md).

# Model

<figure><img src="https://1191514248-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FTN8YmTue1VkQbxdIu8Qv%2Fuploads%2Fkf2fhdP2t781oBDucTQi%2F10.png?alt=media&amp;token=8b6570a0-3ba5-45a3-8aee-dfe59dbb16e9" alt=""><figcaption></figcaption></figure>

## Tokens

Viridian Exchange utilizes two tokens to oversee its utility and governance:

* `$VIRI` — ERC-20 utility token for rewarding liquidity providers with emissions.
* `Set of Votes` — ERC-721 governance token (NFT) used for governance.<br>

`$VIRI`holders holders can lock their tokens to receive`Set of Votes`, which can be increased with additional tokens at any time.

## DeFi concepts

Viridian Exchange combines two DeFi concepts:

* Vote-Escrow, inspired by Curve, boosts incentives for long-term token holders means holders gain protocol fees, bribes, and governance power.
* Staking LP involves liquidity providers staking their tokens to earn $VIRI emissions, while bonding allows users to use their rewards to acquire more $VIRI.

Together, these mechanisms encourage behaviors that support Viridian's success.

<figure><img src="https://1191514248-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FTN8YmTue1VkQbxdIu8Qv%2Fuploads%2Fr3wxxB28dpsZLzvwmDZI%2FFlow.png?alt=media&amp;token=b7461c3e-4848-4f03-a1ab-f1577d1fdce5" alt=""><figcaption></figcaption></figure>

## Summary

Viridian encourages liquidity with its Lock & GovEarn model, rewarding providers and governance participants through emissions, trading fees, and bribes. This strengthens pairs critical to the ecosystem.

Here's how it operates:

1. Lock VIRI to get veVIRI.
2. Hold veVIRI to govern VIRI emissions.
3. Governance rewards include 100% trading fees & bribes.

In this context, governance isn't about voting on protocol futures. It's about weekly voting on gauges to distribute VIRI.