Governance Token Decay

Governance Token Decay describes the process where the voting power associated with a locked asset diminishes over time as the maturity date of the lock-up approaches. This mechanism is designed to prevent users from benefiting from governance rights while their capital is becoming increasingly liquid or ready for withdrawal.

As the lock duration decreases, the user's influence on protocol decisions naturally wanes, unless they choose to extend the lock-up period. This dynamic forces a constant re-evaluation of commitment by the participant.

It serves as a continuous signal of the stakeholder's ongoing alignment with the protocol. This feature is a cornerstone of sophisticated time-weighted governance models, ensuring that voting power remains tied to active, long-term capital.