> For the complete documentation index, see [llms.txt](https://cascadia.gitbook.io/gitbook/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://cascadia.gitbook.io/gitbook/governance/vetokenomics.md). # VeTokenomics Vote-escrowed is a mechanism where users are incentivized to lock their tokens for a specified duration. Cascadia refers to this process as ''align''. Users align CC to receive bCC. You have the flexibility to adjust the duration of your alignment, either longer or shorter. Our core idea is to incentivize stability. When you align CC tokens, you're making a pledge not to sell or transfer them for a certain period, which helps ensure a steady user base. As a result, the network becomes more resilient and secure. Aligned tokens aren't idle. They serve a function in Cascadia's governance. More specifically, bCC has voting power for important decisions shaping the network's future. **What are the benefits?** Aligning tokens in a veTokenomics model presents several advantages: 1. **Long-Term Rewards:** The system is designed to reward patience and long-term commitment. The longer you align your tokens, the higher influence you have. 2. **Governance Participation:** Aligned tokens confer voting rights, enabling holders to participate in governance matters. 3. **Flexibility:** You can decide the extent of the allocation amount and the alignment period. Holding bCC grants the right to: * Receive network gas fees. * Receive token emissions. * Receive fees from native protocols (nProtocols). * Vote on gauge distribution for nProtocols and future blockchain development. * Engage in participatory tokenomics activities. **What are the drawbacks?** Despite its advantages, veTokenomics comes with certain challenges: 1. **Token Liquidity:** Once you align your tokens, they're not immediately available for transactions. You'll have to wait until the alignment period ends, which could be a limitation for users needing liquidity. 2. **Market Volatility:** The value of your tokens might fluctuate during the alignment period. If the token's value decreases, your aligned tokens could be worth less when they're finally available. 3. **Complexity for New Users:** VeTokenomics can be complex to understand, potentially creating a barrier to entry, therefore we have many step-by-step guides and explanations to make the process easier. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://cascadia.gitbook.io/gitbook/governance/vetokenomics.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.