Reserve's Index DTFs introduce a new governance feature: vote-locking tokens

RSR tokens can be vote-locked to shape index operations and earn fees. By locking your tokens, you gain voting power over which assets are included, how they're weighted, and any fee parameters.

Reserve's Index DTFs are introducing a new governance feature: vote-locking tokens, such as Reserve Rights (RSR), to influence index operations and earn fees.

To participate in vote-locking, users can select an Index DTF, such as the Decentralized Tech (DTech) Index DTF or the Metaverse Index DTF. When they vote-lock their tokens, they remain committed to that specific Index DTF, granting them voting power over crucial aspects of the index, such as which assets are included, how they're weighted, and any fee parameters. This engagement can unlock a share of the DTF's revenue for the vote-lockers.

It's important to note that vote-locking is distinct from staking. In the context of Yield DTFs, RSR stakers earn yield in exchange for providing collateral and managing configurations. However, Index DTFs utilize vote-locking purely for governance commitments. While stakers act as a backstop for pegged or yield-bearing tokens, vote-lockers guide the index composition and fees, both ultimately increasing RSR's utility by aligning participants with the protocol's success.

Any token can be selected for vote-locking, and each Index DTF automatically collects a platform fee to buy and burn RSR, further enhancing the token's value. The minimum increments for platform fees are set at $1,000, and the collected fees are used to purchase RSR from the open market.

The typical lock periods are seven days, ensuring that governance proposals can't be manipulated by rapid in-and-out moves. Once a user's tokens are locked, they cannot be withdrawn immediately; if they begin the unlock process, they will forfeit their voting power.

To get started, users can simply choose an Index DTF on app.reserve.org, navigate to Basket Governance, and lock their tokens. This will grant them a say in strategic decisions, such as adding an NFT position or rebalancing the stablecoins, while potentially earning a cut of the DTF's fees.

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