# VEP tokens

Veplus implements a dual token model to manage governance and utility:

* `veVEP` as ERC-721 governance token
* `VEP` as BEP-20 utility token

Users can receive `veVEP` by locking `VEP` tokens at any time. The lock period can be up to 2 years, following the linear relationship shown below:

* 100 `VEP` locked for 2 years will become 100 `veVEP`
* 100 `VEP` locked for 1 years will become 50 `veVEP`

The longer the lock time, the higher the voting power and the more rewards users receive. 

<figure><img src="https://4079933950-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FRH80CJhDXN2Z34z9ncbL%2Fuploads%2F2iSUYx4GgNLknijnLCgC%2FVote%20to%20Earn%20APR.png?alt=media&#x26;token=17402615-046d-4c66-a04d-b7cb857043c6" alt=""><figcaption><p>Vote to Earn Epoch 1 APR: <a href="https://app.veplus.io/vote?veVEP=">https://app.veplus.io/vote</a></p></figcaption></figure>

## Initial Distribution

At launch, the initial supply is 50M `VEP.` We reserved and distributed `VEP` and `veVEP` to users and protocols that will contribute to our mission to become the liquidity base-layer of the BNB Chain as follow:

<figure><img src="https://4079933950-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FRH80CJhDXN2Z34z9ncbL%2Fuploads%2Fw3p3sPcBtggaZ9QutrIk%2FVeplus%20Tokenomics.png?alt=media&#x26;token=8c77d688-4fa5-47c2-aa2f-7b3aebe0f283" alt=""><figcaption><p>Veplus Tokenomics</p></figcaption></figure>

### Community

10M (20%) `VEP` and `veVEP` tokens will be distributed to people who are likeliest to contribute to Veplus and and the BNB Chain long-term success through [airdrops](https://docs.veplus.io/tokenomics/airdrops):&#x20;

1. [Community airdrop on June 30th](https://docs.veplus.io/tokenomics/airdrops/veplus-cross-chain-defi-airdrop-on-june-30th): 2M (4%) veVEP tokens
2. [Retroactive airdrop on July 18th](https://docs.veplus.io/tokenomics/airdrops/veplus-retroactive-airdrop-on-august-18th): 2.5M (5%) VEP tokens&#x20;

### Protocols

The airdrop of 10M (20%) `veVEP` is to attract and engage with top 20 protocols which are mostly to contribute to Veplus and the BNB Chain's long-term success. We will consider a number of metrics such as TVL, transaction volume, unique wallets and number of transactions.&#x20;

### Grants

We have reserved 9M (18%) `veVEP` to distribute to partner protocols after the launch. This will be used to engage partners in the BNB Chain's ecosystem through grants.

### TreeNFT Minters

5M (10%) of the initial supply was allocated for TreeNFT minters. TreeNFT minters receive a mix of 50% `VEP` tokens and  50%`veVEP` NFT:

* *50% -* `veVEP` *locked for 2 years*
* *50% - `VEP`* tokens vested linearly over 8 weeks

### Veplus Team

9M (18%) `veVEP` was allocated for Veplus team. Veplus team will lock 100% of tokens for 2 years and vote for `VEP/USDT` pairs in perpetuity.

### BNB Chain Team

The BNB Chain team has a vested interest in ensuring that Veplus achieves its mission of serving as an ecosystem public good on the BNB Chain. 2.5M (5%) `veVEP` in the initial distribution was allocated for the BNB Chain team to support their vested interest.&#x20;

### Marketing&#x20;

We have reserved 2.5M (5%) `VEP` tokens to distribute to users and partner protocols. This will be used to grow users and build liquidity with partner protocols in the BNB Chain's ecosystem.

### Genesis Liquidity&#x20;

2M (4%) `VEP` of the initial supply will be paired with `USDT` or `WBNB` to provide liquidity at launch.

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