Core Functions
1. Governance Voting
veCSM holders have the right to participate in critical protocol decisions, including:
Adjusting the Rebase distribution mechanism.
Modifying reserve asset management strategies.
Optimizing Dynamic Stability Mechanism (DSM) parameters.
Voting weight is proportional to both the amount of veCSM held and the lock-up duration — ensuring that long-term supporters have greater influence in governance decisions.
2. Partner Revenue Sharing
Users who stake CSM to obtain veCSM are entitled to share a portion of CosmBank’s protocol revenues, including:
Trading fees
Reserve yield revenues
The revenue distribution ratio is correlated with the veCSM lock-up duration — encouraging longer-term participation and deeper alignment with the ecosystem.
3. Rebase Distribution Mechanism Upgrades
veCSM holders can vote to adjust the rules governing CSM’s Rebase (elastic supply) mechanism — optimizing tokenomics over time to ensure sustainable protocol growth and long-term stability.
4. DeFi Integration
veCSM is designed to be composable within the broader CosmFinance ecosystem:
It can serve as collateral for borrowing protocols.
It acts as a governance credential across CosmFinance’s integrated applications, including DeFi lending, RWA asset bridges, and AI-driven financial platforms.
This composability significantly enhances the utility of veCSM across multiple layers of the ecosystem.
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