vePRX & Gauge Voting

Lock PRX -> vePRX (vote-escrowed) -> vote on gauges + boost yield + governance.

What is vePRX

vePRX = “vote-escrowed PRX”. Lock PRX and receive vePRX (non-transferable) representing your governance weight.

• No additional tokens are issued - it only records your rights.
• Weight decays linearly over time - as the lock nears expiry, weight decreases.
• Lock expires: vePRX = 0, PRX unlocks and becomes withdrawable.

Weight formula

vePRX_weight = PRX_locked × (remaining_lock_time / max_lock_time)
max_lock_time = 4 years (48 months)

Example:

Lock amount	Lock duration	vePRX initial
1000 PRX	4 years (max)	1000
1000 PRX	2 years	500
1000 PRX	1 year	250
1000 PRX	6 months	125

After 6 months pass (4-year lock with 3.5 years remaining) -> weight decays from 1000 -> 875 vePRX.

Decay is linear per block. No steps.

vePRX rights

_{vePRX rights: Gauge (direct subsidy, earn bribes), Params (protocol params, burn rate), Treasury (spending votes, grants), Phase (transition vote, milestone gates), Emergency (pause, refund)}

Gauge voting - flywheel

Each market has a gauge. vePRX holders vote on which gauges receive LP subsidy from the treasury.

_{Gauge flywheel loop: lock PRX -> vePRX -> vote gauge -> treasury LP subsidy -> LP earn more -> pool depth up -> trader happy -> volume up -> fee up -> yield up -> demand PRX -> lock more}

A gauge corresponds to the YES-USDC (or NO-USDC) pool of a specific market. Pools with more votes = LPs earn more.

Who votes for what

• LPs providing liquidity -> vote for their own pool to receive more subsidy.
• Project owners who created a market -> vote for their market to attract LPs + traders.
• Traders interested in a market -> vote for that market to deepen liquidity.

Bribe market

_{Bribe market: project deposits bribe (PRX/USDC) -> vePRX holders vote gauge -> epoch end -> pool receives subsidy + voters receive bribe pro-rata}

External projects pay PRX/USDC to vePRX holders who vote for their pool - creating a liquid vote market.

PrediX will self-host the bribe layer (Phase 2).

Boost USDC yield

vePRX holders are also stkPRX holders -> they receive boosted USDC yield:

Lock	Yield boost	Vote weight
No lock	1.0x	0
4-year lock	2.5x	4x

Longer lock = higher yield + voting power. They go hand in hand.

Details: Staking.

Restrictions

• vePRX is non-transferable. Buy PRX -> lock -> receive vePRX.
• Extend lock: 1-year lock with 3 months remaining, extend by 9 months -> new 1-year lock (clock resets).
• Early unlock: Phase 2 will allow early unlock with a 50% PRX penalty sent to the treasury. Currently: hard lock.

Protocol parameter governance

vePRX votes on changes to:

Param	Default	Range
Oracle approve list	…	Add/remove adapter
Market creation bond	TBA	1k-100k PRX
Stake unstake cooldown	7 days	1-30 days
Buyback frequency	Weekly	Daily-Monthly
Phase transition	Bootstrap @ TGE	Bootstrap -> Scale -> Mature -> Dominance
Revenue split	Per-phase preset	DAO-adjustable

Phase transition + S6 Reserve

vePRX votes on phase upgrades (Bootstrap -> Scale -> Mature -> Dominance) based on publicly available metrics (volume, runway). S6 Reserve (60M PRX) is DAO-locked - unlockable only via vePRX vote.

Proposal flow:

1. vePRX holder proposes a change (requires > 100k vePRX to propose, anti-spam).
2. 7-day discussion window on forum.
3. 5-day voting period (Snapshot off-chain or on-chain).
4. Quorum: > 4% total vePRX voted.
5. Pass: > 50% YES of votes cast.
6. Execute: 48h timelock + multisig execution.

Treasury spend governance

vePRX votes on treasury spending:

• Audit funding (e.g. $200k for Spearbit).
• Grants for devs / contributors ($5k-100k typical).
• Marketing initiatives.
• Insurance fund top-up.

Same proposal process applies.

Quadratic voting (TBA)

Phase 2 will experiment with quadratic voting for large proposals:

voting_power = sqrt(vePRX_weight)

Reduces whale dominance. Only applies to proposals > $100k spend.

Risks

Risk	Mitigation
Vote concentration (whale locks large amount)	Quadratic voting in Phase 2
Bribe corruption (voters choose based on bribes, not merit)	Accepted trade-off - bribes create market demand for vePRX
Low participation (few voters)	Default fallback (equal across pools) + small PRX emission for voters

Timeline rollout

Phase	Feature
TGE	Lock PRX -> vePRX. Basic gauge voting.
TGE + 3m	Yield boost tiers activated.
TGE + 6m	Bribe market Phase 1.
TGE + 12m	Protocol parameter voting.
TGE + 18m	Treasury spend governance.
TGE + 24m+	Quadratic voting experiment, cross-chain governance.

All milestones are TGE-relative; exact dates are TBA after TGE is confirmed.