Answering all your burning questions about the vote locking boost
HERMES holders can vote lock their HERMES into Hermes Protocol to receive a veHERMES NFT. The longer they lock for, the more veHERMES they receive. Vote locking allows you to vote in governance, boost your HERMES rewards and receive trading fees.
When vote locking HERMES, you will also earn a boost on your provided liquidity of up to 2.5x. The goal is to incentivize users to participate in governance by rewarding them with a bigger share of the daily HERMES inflation.
Even though their balance is already inflation protected (undiluted).
veHERMES stands for voting escrow HERMES. They are your HERMES locked for voting. The longer you lock your HERMES for, the more voting power you have (and the bigger boost you can reach). You can vote lock 1,000 HERMES for a year to have a 250 veHERMES weight. Each HERMES locked for four years is equal to 1 veHERMES.
The number of veHERMES you will receive depends on how long you lock your HERMES for. The minimum locking time is one week and the maximum locking time is four years.
Your veHERMES balance increases but total voting weight gradually decreases as your escrowed tokens approach their lock expiry. You can avoid this by increasing you expiry date every week.
To reach your maximum boost of 2.5x, you need to take into account your veHERMES NFT balance attached to your LPs and the total supply of veHERMES.
Your voting power applies to all gauges.