# Why veSTELLA

veSTELLA was the logical evolution of StellaSwap given the success of VE (3,3) models that maximized DEX token utility and sustainability. The following point sums up our reasons;

1. Shift towards **governance** model in the pursuit of decentralization
2. **Democratizing** the core functino of a DEX: STELLA Emissions
3. **Incentivize** long term holders of STELLA
4. Drive ecosystem **growth**
   1. veSTELLA creates a flywheel effect where protocols bribe users for their votes with their own token, users accumulate or lock STELLA longer to receive more returns and more voting power
5. Increase incentives for **protocols** to accumulate STELLA
   1. Protocols will be incentivized to acquire more STELLA and vote with it to receive STELLA rewards on their preferred pool.
6. Less STELLA in **Circulation**
   1. Longer lockups of STELLA, leading to less STELLA sold on the open market supporting price

## Benefits

<figure><img src="/files/Pkd7Cb5tfmQuPrynh5MQ" alt=""><figcaption></figcaption></figure>

veSTELLA holders will receive the following benefits:

* Huge Increase in APR
  * New veSTELLA Revenue share swap fees= 83.5% > old xSTELLA= 11.5%
  * Active participation required each epoch to receive rewards
* Rewards from Trade fees & Liquid Staked Derivatives (stDOT & stGLMR soon)
* Relay strategies can pay rewards in stable coins (USDC)
* Direct where emissions go by voting
* Receive Bribes for your votes in partner tokens
* Participate in future governance of the platform
* Auto managed strategies for lock & forget


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