Rosina Gilles qNTh

We need to talk about what makes $BANK different from the thousands of other governance tokens. This isn't just about voting rights—it's about building a sustainable economic engine where token value directly correlates with protocol growth. The veBANK model creates one of the most sophisticated tokenomic structures in DeFi, and understanding this mechanism is crucial for recognizing Lorenzo's long-term potential.
The magic happens through multiple value accrual layers. First, there's the direct fee sharing: as OTFs generate management and performance fees, a significant portion gets distributed to veBANK holders. This creates immediate cash flow for long-term stakers. Second, there's the vote-locking mechanism that progressively reduces circulating supply—the longer the average lock period, the fewer tokens are available for sale. Third, there's the governance premium: veBANK holders direct emissions to the most promising vaults, creating a self-reinforcing cycle where good governance attracts more TVL, which generates more fees, which makes veBANK more valuable.
Let's model this mathematically: If Lorenzo reaches $1 billion in TVL across its OTFs, and assuming a conservative 2% average management fee plus 10% performance fee on strategies, the protocol could generate $20-40 million annually in fees. If 50% of that goes to veBANK holders, that's $10-20 million in annual distributions to locked token holders. This doesn't even account for the potential price appreciation from reduced circulating supply.
I've analyzed numerous token models, and what struck me about Lorenzo's approach is how it learned from both Curve's success and its shortcomings. The veBANK model preserves the alignment benefits while applying them to asset management—a vertical with even greater fee potential than DEX trading.
The narrative for $YGG revolves around play-to-earn economics, but Lorenzo is building earn-through-governance economics. So I'm curious: Which veBANK value accrual mechanism do you find most compelling—direct fee sharing, reduced circulating supply, or governance power over capital allocation?
@Lorenzo Protocol #lorenzoprotocol $BANK

$BTC
{spot}(BTCUSDT)

$