> For the complete documentation index, see [llms.txt](https://docs.clovis.network/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.clovis.network/clovis/tokenomics.md).

# Tokenomics

The CLO token underpins governance, incentives, and value capture across the Clovis ecosystem. Its design aligns tokenholder interests with protocol growth, liquidity depth, and network security.

1. **Governance via veCLO; Gauge Voting and Emission Control**
   * Lock CLO to mint vote escrowed veCLO. Voting power rises with the product of the amount and the lock duration.
   * veCLO holders steer gauge weights, protocol parameters, treasury spending, protocol integrations, and upgrades.
   * Each epoch, veCLO votes decide how CLO emissions are distributed across pools on Clovis and Yei products.
   * This fosters competitive "gauge wars" as protocols offer incentives to veCLO voters to attract liquidity.
   * Projects stake or bid CLO to list assets on Clovis. Successful listings unlock cross-chain distribution across all integrated networks. This mechanism curates quality and generates demand.
2. **Fee Sharing and Boosted Yield**
   * Historical traction: Yei generated $5.5M in protocol revenue from YeiLend and YeiSwap over the past year.
   * Forward outlook: Clovis targets $15.38M in annualized revenue by 2026 existing market conditions and adoption assumptions.
3. **Discounted Fee Payment**
   * Users who pay trading, borrowing, or bridging fees in CLO receive protocol-level discounts, driving organic utility.
4. **Staking for Execution Security for Clovis Messaging (Roadmap)**
   * Executors and messaging operators will bond CLO. Misbehavior triggers slashing.
5. **Strategic Exposure to Cross-Chain Liquidity Growth**
   * CLO enables holders to capture governance power and a fee share as Clovis scales to aggregate the $200B+ DeFi TVL across more than forty modular rollups and chains, positioning it as core market infrastructure.