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Earning Gov Fees
50% of all fees generated by HOPE Ecosystem, defined as Gov Fees, are distributed to veLT holders to incentivize their participation in the governance process.
Gov fees will be collected periodically, converted to $stHOPE through a "burning process", and then distributed to veLT holders. The distribution is calculated based on the amount of veLT they hold and their voting participation using veLT during each voting epoch.
For each distribution:
- 1.50% of gov fees are distributed to all veLT holders proportionately.
- 2.50% of gov fees are distributed to the veLT holders who vote for liquidity gauges, based on the voting results for each voting epoch involved between two distributions.
When the burning process is triggered, a smart contract collects trading fees from all the pool contracts. Those fees come in the form of different stable coins or tokens. The fee tokens are swapped to $HOPE, which are then converted to $stHOPE before they can be claimed. Finally, the burner creates a checkpoint which updates all the claimable balance of each veLT holder.
Burning is an expensive process, as it involves many complex transactions, but anyone can trigger the process whenever they wish if they are willing to pay for it.
Users who hold veLT can claim fees as often as possible, but fees will only be converted into $stHOPE once a week.
Fees may only be claimed for the week that has already passed, because the burner does not know how much everyone is entitled to before the end of the voting epoch. Fees will be available on a weekly basis within 24 hours after 00:00 Thursday UTC, as long as someone (usually the HOPE team) has initiated the burning process prior to that.
There is a delay before you can first claim your $HOPE after locking $LT. It takes 8 days from the Thursday after which you lock before you can claim.
Last modified 4mo ago