veQI (vote-escrowed QI)
What is veQI?
Vote-escrowed QI (veQI) is a representation of a user’s voting power for AVAX delegations through BENQI Liquid Staking. It is obtained by staking QI on BENQI Liquid Staking.
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 BENQI Liquid Staking.
Note: Amount of delegations is based on the validator’s aggregate vote count of veQI
Why veQI?
Before veQI, liquid staking 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 BENQI Liquid Staking to veQI holders. By locking up QI to accrue veQI, users will be able to direct staked AVAX delegations from BENQI to any validator of choice by simply voting for it on the app.
veQI mechanism
Staking
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).
veQI accrual rate is 0.000003888888888888 veQI per staked QI per second.
Unstaking
Any amount of QI unstaked resets a user’s accumulated veQI holdings.
Claiming
There is no need to claim veQI upon staking QI. It automatically accrues over time.
Voting
In BENQI Liquid Staking, 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.
Delegations
Refer to Delegation Strategy on how BENQI Liquid Staking delegates staked AVAX to validators.
Last updated
