[TIP-8] Proposal for Introduction of a ve (Vote-Escrowed) Based Governance Voting System

Summary

This proposal introduces a transition of Talken's governance voting system from the current "TALK holdings + staked amount" model to a "ve (Vote-Escrowed)" based system. Proposed Structure: • Voting power = ve balance (staked amount × lock duration weight) • Long-term holders receive greater voting influence and higher rewards • Immediate activation upon approval (no additional deployment or migration required)

1. Background

Issues with the Current System Insufficient incentives for long-term contributors: • Voting power and rewards remain the same regardless of holding duration (1 week or 1 year) • Long-term supporters and short-term participants are treated equally • No incentive to commit TALK for extended periods Consequences: • Difficulty building a loyal, engaged community • Weak foundation for long-term project growth • Lower governance quality and reduced decentralization

Why ve (Vote-Escrowed)? The ve system is a proven model used by major DeFi protocols such as Curve, Convex, and Frax. ve System Overview(based on 1 TALK staked): • 1 month → 0.038 ve-TALK • 6 months → 0.248 ve-TALK • 1 year → 0.495 ve-TALK • 2 years → 1.000 ve-TALK

Benefits: • Greater voting power and rewards for long-term contributors • Fairer distribution of influence (contribution = amount × duration) • Stronger project stability and long-term sustainability

2. Proposal Details

ve Calculation Method • Maximum lock duration: 105 weeks (approx. 2 years, fixed) • Weekly decay rate = staked amount / 105 weeks • ve balance = weekly decay rate × remaining weeks

Voting Power by Lock Duration (based on 1 TALK staked) • 1 month → 0.038 ve-TALK • 6 months → 0.248 ve-TALK • 1 year → 0.495 ve-TALK • 2 years → 1.000 ve-TALK ※ ve balance represents your voting power. Voting influence is proportional to lock duration.

Expected Returns by Lock Duration (based on 100 TALK staked) • 1 month → ~1.5% APY • 6 months → ~10% APY • 1 year → ~20% APY • 2 years → ~40% APY ※ APY figures are illustrative and will vary depending on total staking participation.

Reward Simulation Example (based on weekly distribution of 13,104 TALK) • Alice: 1,000 TALK, 2-month lock → 944 TALK/week → 49,088 TALK/year • Bob: 1,000 TALK, 1-year lock → 6,052 TALK/week → 314,704 TALK/year • Carol: 500 TALK, 2-year lock → 6,108 TALK/week → 317,616 TALK/year ※ Bob (1 year) receives 6.4× more rewards than Alice (2 months). ※ Carol (500 TALK, 2 years) receives nearly the same rewards as Bob (1,000 TALK, 1 year).

User Impact • Short-term lockers (1–3 months): Lower rewards; extending to 6–12 months recovers previous levels • Long-term lockers (1 year+): 2–3× more rewards; significantly higher governance influence • Non-stakers: No voting power (minimum 4-week stake required)

Implementation Plan • Phase 1: Community feedback period (1 week) • Phase 2: Governance vote (1 week) • Phase 3: Immediate activation upon approval

3. Expected Outcomes

• Fairer distribution of influence (contribution = amount × time) • Approx. 20% APY for 1-year lock, 40% APY for 2-year lock • Stronger project stability and long-term sustainability • Adoption of a proven DeFi governance standard used by Curve, Convex, and Frax

4. Request for Community Feedback

This proposal is currently in Stage 2: Voting. Community discussion has been completed. Voting Period: 1 week • Talken Governance: https://wallet.talken.io/web/governance • Snapshot: https://snapshot.box/#/s:talkenio.eth Previous Discussion • Telegram: https://t.me/talken_io/105437 • Discord: http://bit.ly/4loi0AN