$HOOKED and $veHOOKED
What is $HOOKED?
$HOOKED is the native utility and governance token of the HOOKED Protocol. It is the foundation of liquidity incentives, governance power, and protocol alignment. Holding $HOOKED allows participants to access governance through conversion into $veHOOKED, while also serving as the base asset for emissions and ecosystem programs.
What is $veHOOKED?
$veHOOKED (vote-escrowed $HOOKED) represents locked $HOOKED tokens that grant governance rights and rewards. Unlike traditional ve models, HOOKED’s binary lock system eliminates time decay. Once locked, voting power remains constant until the user chooses to exit, ensuring stability and simplicity. $veHOOKED is the mechanism through which emissions are directed, incentives are distributed, and governance decisions are made.
What can be done with each?
$HOOKED:
- Traded freely on secondary markets.
- Converted into $veHOOKED for governance.
- Used as the source asset for emissions and ecosystem programs.
$veHOOKED:
- Vote on which liquidity pools receive emissions.
- Earn a share of protocol fees and external incentives weekly.
- Participate in governance proposals and protocol upgrades.
How are they obtained?
- $HOOKED can be obtained through decentralized exchanges, protocol emissions, or incentivized programs.
- $veHOOKED is obtained by locking $HOOKED in the binary lock mechanism. Once locked, the tokens become illiquid but generate governance rights and rewards until exit.
$HOOKED → $veHOOKED Conversion
Users convert $HOOKED into $veHOOKED by locking their tokens. This lock is binary: full voting power is granted from the moment of lock and does not decay over time. Voting power and reward eligibility remain constant until the user initiates an exit or adds to their position.
How to Exit $veHOOKED
Exiting begins when a user flags their position. This triggers a 365-day vesting period, during which:
- Voting power transfers to the vesting contract.
- Votes are cast automatically each week in an optimal, protocol-aligned way.
- Earnings are redirected to purchase $HOOKED and fund ecosystem programs like the Lock Incentivization Program.
- Users may claim the percentage already unlocked at any time, while the unvested balance is forfeited back to the contract.
This ensures orderly exits and protects protocol stability.
Voting Incentives
Anyone can offer vote incentives (bribes) to $veHOOKED holders, rewarding them for directing emissions toward specific pools. This creates a market for liquidity, where anyone can compete for governance support. Incentives are distributed during weekly rebases alongside trading fees and protocol revenue.
Voting Breakdown
Each epoch, $veHOOKED holders vote on emission gauges (pools). The weight of votes determines how much of the emission schedule flows into each pool.
Higher vote weight > more emissions > deeper liquidity.
Emission Calculation
Base emissions are distributed weekly, with elastic adjustments tied to protocol performance. The share each pool receives is proportional to the voting weight assigned to its gauge. Over time, this mechanism ensures that liquidity incentives follow real demand, rather than arbitrary schedules.
Vote Weight Calculation
Voting weight is determined by the number of $veHOOKED tokens a user holds. Because binary locks remove time decay, weight is linear and permanent until exit or increased position. 1 $veHOOKED equals 1 vote weight, making the system predictable and easy to understand.
1 $veHOOKED = 1 vote weight
Weekly Epochs
From Thursday 12:00 AM UTC - to Wednesday 11:59 PM UTC
HOOKED operates in weekly epochs. At the end of each epoch:
- Emissions are distributed according to gauge votes.
- Trading fees and incentives are collected and redistributed to $veHOOKED holders via voting rewards.
- Votes reset, allowing $veHOOKED holders to adjust positions for the next epoch.
This cadence ensures a steady rhythm of incentives, rewards, and governance alignment.