Curve DAO (CRV)

Tokenomics & Utility

CRV launched on Ethereum as an ERC-20 token with a maximum supply of about 3.03 billion. Its planned distribution assigns 57% to continuing community rewards and 5% to early users, who supplied assets before the token launched. Another 5% went to the community reserve, 26.4% to the core team, 3.6% to investors, and 3% to employees. The scheduled vesting for the initial allocations finished in August 2024; the remaining community allocation enters circulation gradually through rewards. (resources.curve.finance)

New CRV is issued according to a schedule whose annual issuance rate decreases over time. Gauges direct that issuance to participants in eligible pools and lending markets. The amount a person earns depends partly on the rewards assigned to a gauge and their participation in it. This design uses CRV to encourage the supply of assets where the DAO has chosen to offer incentives. (resources.curve.finance)

What locking CRV does

A holder can lock CRV for a period from one week to four years and receive veCRV, short for vote-escrowed CRV. Voting power depends on both the number of tokens locked and the time left on the lock. As that time runs down, the associated veCRV balance declines. The locked CRV becomes available again when the chosen period ends. (resources.curve.finance)

veCRV allows its holder to vote on DAO proposals and on the direction of gauge rewards. It also provides a share of eligible protocol fee revenue. For someone who supplies assets to an eligible market, locking CRV can increase their CRV rewards by up to 2.5 times under the boost rules. veCRV stays with the address that created the lock and cannot be transferred like ordinary CRV. (resources.curve.finance)