Vote-Escrow Locking (veAXIO)

Lock AXIO tokens to receive veAXIO -- a non-transferable governance token whose voting power and revenue share decay linearly over the lock period. Longer locks earn higher multipliers. Bootstrap participants receive enhanced rewards.

1. What is veAXIO?

veAXIO is a vote-escrow token minted on Token-2022 with the non-transferable extension. When you lock AXIO tokens into the ve-lock program, you receive veAXIO at a rate determined by your lock duration. veAXIO grants:

• Governance voting power -- proportional to your effective veAXIO balance
• Revenue share -- claim a share of MEV revenue distributed to the veAXIO staker pool
• Protocol influence -- fee parameter votes, emission schedule proposals

veAXIO is not transferable. It cannot be sold, sent, or used as collateral. It exists solely to represent your time-locked commitment to the protocol.

2. Lock Duration and Multipliers

The multiplier applied to your locked AXIO determines how much veAXIO you receive. Longer commitments earn higher multipliers.

Steady-State Multiplier Table

Bootstrap Multiplier

During the bootstrap phase, the 12-month lock tier receives an enhanced 5.0x multiplier instead of the steady-state 4.0x. All other tiers remain unchanged.

Positions created during bootstrap retain their 5.0x multiplier for the full lock duration, even after bootstrap mode is deactivated. The is_bootstrap flag on each position records this permanently.

veAXIO Calculation

ve_amount = locked_amount * multiplier / 10000

Multipliers are stored in basis points (10,000 = 1.0x). A 12-month bootstrap lock of 10,000 AXIO produces:

ve_amount = 10,000 * 50,000 / 10,000 = 50,000 veAXIO

3. Linear Decay

veAXIO governance power decays linearly from lock creation to expiry. The effective balance at any point is:

effective_ve = ve_minted * remaining_slots / total_duration_slots

Where:

• remaining_slots = end_slot - current_slot
• total_duration_slots = end_slot - start_slot

Decay Example

A user locks 1,000 AXIO for 12 months (4.0x multiplier), receiving 4,000 veAXIO:

After the lock expires (current_slot >= end_slot), effective veAXIO returns 0. The user must withdraw to reclaim their AXIO and burn the veAXIO tokens.

4. Whale Cap

The whale cap prevents any single address from holding more than a configured percentage of the total veAXIO supply. The default is 500 bps (5%).

The check is performed on every Lock instruction:

user_new_ve_balance * 10,000 <= new_total_ve_supply * whale_cap_bps

If the inequality is violated, the transaction fails with Whale cap exceeded. The admin can update the whale cap via the UpdateWhaleCap instruction (valid range: 1--10,000 bps).

5. PDA Derivation

All program accounts are derived as Program Derived Addresses (PDAs):

// Derive VeConfig PDA
const [configPda] = PublicKey.findProgramAddressSync(
  [Buffer.from("ve_config")],
  VE_LOCK_PROGRAM_ID
);

// Derive LockPosition PDA for a user
const [positionPda] = PublicKey.findProgramAddressSync(
  [Buffer.from("lock"), userPubkey.toBuffer()],
  VE_LOCK_PROGRAM_ID
);

6. Instructions

6.1 Initialize

Sets up the ve-lock program with default multiplier table and configuration. Admin only.

Parameters:

Accounts:

Default config on initialization:

• min_lock_slots: 6,480,000 (1 month)
• max_lock_slots: 77,760,000 (12 months)
• Multiplier table: 1.0x / 1.5x / 2.0x / 4.0x (5.0x bootstrap 12-month)

6.2 Lock

Lock AXIO tokens and receive veAXIO. Creates a new lock position for the user. Fails if a position already exists (use IncreaseLock or ExtendLock instead).

Parameters:

Accounts:

6.3 IncreaseLock

Add more AXIO to an existing lock position. The additional veAXIO is minted at the position's original multiplier. The lock end slot does not change.

Parameters:

Accounts: Same as Lock (position must already exist and not be expired).

6.4 ExtendLock

Extend the lock duration. If the extension crosses a multiplier tier boundary, additional veAXIO is minted to reflect the new multiplier.

Parameters:

Accounts: Same as Lock (position must already exist).

The total duration (new_end_slot - start_slot) cannot exceed max_lock_slots (12 months). If the extension upgrades the multiplier tier (e.g., from 1.5x to 2.0x), the difference in veAXIO is minted automatically.

6.5 Withdraw

Withdraw all locked AXIO after the lock expires. Burns all veAXIO held by the user and returns the full locked amount.

Parameters: None.

Accounts:

Fails if current_slot < end_slot (lock has not expired).

6.6 SetBootstrap

Toggle bootstrap mode on or off. Admin only.

Parameters:

Accounts:

6.7 UpdateWhaleCap

Update the whale cap threshold. Admin only.

Parameters:

Accounts:

7. Example: Full Lock Lifecycle

import { Connection, Keypair, PublicKey, Transaction } from "@solana/web3.js";

const connection = new Connection("https://rpc.x1.xyz");
const user = Keypair.fromSecretKey(/* ... */);
const PROGRAM_ID = new PublicKey("/* ve-lock program ID */");

// Step 1: Lock 5,000 AXIO for 6 months (~38,880,000 slots)
// At 2.0x multiplier, user receives 10,000 veAXIO
const lockIx = createLockInstruction({
  user: user.publicKey,
  amount: 5_000_000_000_000n, // 5,000 AXIO (9 decimals)
  durationSlots: 38_880_000n,
  programId: PROGRAM_ID,
});

// Step 2: After 2 months, add 2,000 more AXIO
// Minted at original 2.0x = 4,000 additional veAXIO
const increaseIx = createIncreaseLockInstruction({
  user: user.publicKey,
  additionalAmount: 2_000_000_000_000n,
  programId: PROGRAM_ID,
});

// Step 3: Extend to 12 months total
// Multiplier upgrades from 2.0x to 4.0x
// Additional veAXIO minted for the difference
const extendIx = createExtendLockInstruction({
  user: user.publicKey,
  newEndSlot: startSlot + 77_760_000n,
  programId: PROGRAM_ID,
});

// Step 4: After lock expires, withdraw everything
// All veAXIO burned, 7,000 AXIO returned
const withdrawIx = createWithdrawInstruction({
  user: user.publicKey,
  programId: PROGRAM_ID,
});

8. State Account Layouts

VeConfig (189 bytes)

LockPosition (75 bytes)

Next Steps