> 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)

veXPGN is Paragon’s governance and value-alignment layer.  By locking XPGN, users gain voting power, influence protocol parameters, and participate in system-level incentives.

### TL;DR

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

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### 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

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👉 veXPGN is:

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

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### Locking Mechanics

#### Parameters

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

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#### Voting Power

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

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👉 Longer lock duration results in greater voting power.

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#### Features

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

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### What veXPGN Controls

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#### 🌾 Emissions (Farming)

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

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#### ⚡ Execution Parameters

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

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👉 veXPGN aligns liquidity incentives with actual protocol usage.

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### Utilization Gauges

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

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#### Traditional Model

* rewards based on liquidity size
* encourages idle capital

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#### Paragon Model

* rewards based on real usage
* prioritizes active liquidity

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#### Mechanism

Each pool receives weight based on:

* governance votes (veXPGN)
* actual usage metrics

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**Simplified Model**

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

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Where:

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

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👉 This ensures that actively used pools receive more incentives.

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### Flow Utilization Score (FUS)

FUS measures real pool usage.

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#### Components

* volume routed
* execution efficiency
* liquidity stability

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👉 Scores are normalized across pools.

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### Bribes

Protocols can incentivize veXPGN voters.

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#### Types

**Gauge Bribes**

* incentivize emissions allocation

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**Execution Incentives**

* incentivize routing preference

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👉 Incentives are only effective if execution quality remains valid.

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### Anti-Gaming Protections

Designed to prevent manipulation:

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

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👉 Only meaningful usage contributes to rewards.

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### Contract Architecture

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

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### Example

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

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👉 Both governance and usage influence outcomes.

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### What You See in the UI

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

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### Governance Controls

Parameters adjustable via governance:

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

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👉 veXPGN holders directly influence system behavior.

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### Summary

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

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