Vote-escrowed QI (veQI) is a representation of a user’s voting power for AVAX delegations through BENQI Liquid Staking (BLS). It is obtained by staking QI on BENQI Liquid Staking (BLS).
With veQI, users will be able to vote for specific Avalanche validators to receive additional delegations. This voting power determines the amount of staked AVAX delegations directed to the specific validator from BLS.
AVAX delegations from BLS to Avalanche Validators with veQI voting power
Before veQI, BLS delegations were equally, and randomly selected based on a set of validator minimum criteria. Validators have benefitted from it, hitting full utilization of their validator nodes and reaping benefits of additional delegation rewards.
The launch of veQI aligns Avalanche validators with BENQI, opening up a portion of delegations from BLS to veQI holders. By locking up QI on BLS to accrue veQI, users will be able to direct staked AVAX delegations from BLS to any validator of choice by simply voting for it on BLS.
All user's veQI balance start from zero. When QI is staked, veQI accrues linearly over time to a maximum of 100 times the QI staked (eg: 1 QI = 100veQI).
Any amount of QI unstaked resets a user’s accumulated veQI holdings.
There is no need to claim veQI upon staking QI. It automatically accrues over time.
In BLS, locate the “Vote” tab. Users vote for Avalanche Validator(s) of choice using their veQI balance. All users have a total of 100% voting power which can be used to direct votes to single or multiple NodeIDs. Amount of delegations is based on the validator’s aggregate vote count of veQI.