Tokenomics

ACRE Token

ACRE is the Acre DAO’s membership token, and is used for DAO governance.

ACRE Distribution

There will be a total of 1 billion ACRE tokens minted, to be distributed based on DAO vote.

veACRE

veACRE is the voting token on Acre and is used to make collective decisions regarding the Acre treasury, stBTC specifications, and other protocol matters.

veACRE holders are able to direct the allocation of deposited BTC.

Acre DAO participation requires users to hold a balance of vote-escrowed ACRE, known as veACRE.

veACRE is a non-transferable ERC20 token token designed to allow users to vote and participate in the Acre Protocol. The balance of veACRE that a user holds is the measure of their voting power in Acre DAO governance.

Votes can be used to:

• Create and vote on Acre DAO governance proposals.

• Govern protocol parameters.

• Add or remove validators from the L2 validator pool.

• Direct ACRE emissions to stBTC gauges.

• Receive incentives from third party protocols to vote on their gauges.

How locks work

• Users receive veACRE by locking their ACRE tokens for a period of up to 4 years.

• ACRE locked for the maximum 4 year period receive 1 veACRE for each ACRE locked.

• The amount of veACRE a user has decays linearly over the duration of their lock.

• It is possible to have multiple locks of different durations.

• Locks can be set to automatically re-locked to maintain the maximum veACRE position.

• Locks can be split (by extending the duration of only a portion of the lock), or merged (by extending one locks duration to the same duration as another lock).

• Every Thursday, the number of weeks for a lock decreases by 1. When a locks duration reaches 0, the ACRE can be withdrawn without penalty.

• It is possible to exit a veACRE position early by paying a withdrawal fee, which accrues to the DAO treasury. The fee to exit early starts at 100% and decays linearly based on the number of weeks remaining until the tokens unlock.