> For the complete documentation index, see [llms.txt](https://paragon-protocol.gitbook.io/paragon-protocol/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://paragon-protocol.gitbook.io/paragon-protocol/governance-and-tokens/vexpgn-locking-and-power.md).

# veXPGN (Locking & Power)

### TL;DR

* lock XPGN → receive veXPGN
* vote on emissions and execution parameters
* participate in protocol incentives
* voting power increases with lock duration

***

### What is veXPGN?

veXPGN is a vote-escrowed position created by locking XPGN.

When you lock XPGN, you receive:

* governance voting power
* participation in protocol-level incentives
* access to gauge voting and bribes

***

👉 veXPGN is:

* non-transferable while locked
* time-weighted
* aligned with long-term participation

***

### Locking Mechanics

#### Parameters

* asset: XPGN
* duration: 1 week → 104 weeks

***

#### Voting Power

**veXPGN = XPGN × (lock duration / max duration)**

***

👉 Longer lock duration results in greater voting power.

***

#### Features

* extend lock duration
* add additional XPGN
* claim rewards independently

***

### What veXPGN Controls

***

#### 🌾 Emissions (Farming)

* directs XPGN rewards across pools
* determines which pools receive incentives

***

#### ⚡ Execution Parameters

* influences how liquidity is prioritized
* impacts routing preferences across pools

***

👉 veXPGN aligns liquidity incentives with actual protocol usage.

***

### Utilization Gauges

Paragon uses **utilization-based gauges** instead of pure TVL-based allocation.

***

#### Traditional Model

* rewards based on liquidity size
* encourages idle capital

***

#### Paragon Model

* rewards based on real usage
* prioritizes active liquidity

***

#### Mechanism

Each pool receives weight based on:

* governance votes (veXPGN)
* actual usage metrics

***

**Simplified Model**

effective weight = vote weight × (1 + β × utilization)

***

Where:

* β = utilization multiplier
* utilization = relative usage of the pool

***

👉 This ensures that actively used pools receive more incentives.

***

### Flow Utilization Score (FUS)

FUS measures real pool usage.

***

#### Components

* volume routed
* execution efficiency
* liquidity stability

***

👉 Scores are normalized across pools.

***

### Bribes

Protocols can incentivize veXPGN voters.

***

#### Types

**Gauge Bribes**

* incentivize emissions allocation

***

**Execution Incentives**

* incentivize routing preference

***

👉 Incentives are only effective if execution quality remains valid.

***

### Anti-Gaming Protections

Designed to prevent manipulation:

* volume filters
* price impact caps
* oracle validation
* minimum liquidity thresholds

***

👉 Only meaningful usage contributes to rewards.

***

### Contract Architecture

* **veXPGN NFT** → locking and voting
* **Gauges** → store votes and allocate emissions
* **Execution Layer** → routes trades
* **Reward Vaults** → distribute incentives

***

### Example

* pool receives votes
* pool has strong utilization\
  → receives higher effective weight

***

👉 Both governance and usage influence outcomes.

***

### What You See in the UI

* voting power
* selected gauges
* rewards and incentives
* active positions

***

### Governance Controls

Parameters adjustable via governance:

* utilization multiplier (β)
* emission allocation rules
* execution parameters
* risk limits

***

👉 veXPGN holders directly influence system behavior.

***

### Summary

* lock XPGN → receive veXPGN
* influence emissions and execution
* participate in incentive systems
* rewards driven by real usage

***

veXPGN is the coordination layer of Paragon — aligning governance, liquidity, and execution into a system where participation and usage drive outcomes.


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