🗳️Vote-Locked MGP
vlMGP
Vote-Locked MGP is the locked version of MGP. The governance power that Magpie has acquired by locking WOM on Wombat Exchange is shared and controlled by vlMGP holders. Users interested in participating in Wombat's governance can buy voting power cost-effectively through MGP while earning high APR at the same time.
Users must lock MGP as vlMGP to:
Earn passive income
Participate in governance
How can I get vlMGP?
Users can lock MGP on Magpie to get vlMGP at 1:1 ratio.
What is the benefit of vlMGP?
Earn revenue share.
Earn $MGP rewards.
Maximized voting power on @WombatExchange.
Governance benefits on Magpie.
Receive forfeited reward from others
Bribes earnings
How does lock / unlock work?
Once MGP is locked, it is in lock state indefinitely.
Users must "Start Unlock" to start 60 day unlock period known as "Cool Down".
Users can "Force Unlock" to unlock their vlMGP before 60 days by paying a penalty fee.
To fully unlock vlMGP without penalty users must wait 60 days for the Cool Down period to end.
vlMGP holders continue to earn passive income but cannot participate in voting while their tokens are in Cool Down.
At day 1, penalty cost is 80% of the total MGP tokens locked by the user and will decrease non-linearly over time.
There are three states of vlMGP
1. Lock state: By default, vlMGP is in the locked state and has the ability to vote for Magpie governance, receive a share of Magpie's revenue, and participate in the bribery market on Magpie.
2. Cooldown (or unlocking) state: Once you "Start Unlock", your vlMGP will enter a cooldown state. At this point, you can select the amount of vlMGP to begin the unlocking process. While in the cooldown state, your vlMGP can ONLY receive a share of Magpie's revenue. It will NOT be able to vote for Magpie governance nor participate in the bribery market on Magpie.
3. Expired state: After the "Cooldown" period concludes, your vlMGP will enter the expired state. In this state, your vlMGP will lose all functionalities, including voting for Magpie governance, receiving any rewards, and using the bribery market on Magpie. The rewards will continue to be allocated to expired vlMGP, but they will be forfeited and redistributed to all other vlMGP users once claimed. The forfeited portion will be proportional to the amount of expired vlMGP and the duration of their expired state.
What happens with tokens accumulated from penalty?
The community will determine the use of the accumulated penalty.
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