LEVEL uses a dual-token model within its omnichain ecosystem to separate governance (LGO) and utility (LVL) functions and align user incentives by using two distinct tokens. This separation helps allocate resources for governance efficiently while not being negatively impacted by excessive demand for utility purposes, resulting in a fairer system for all users. Thus allowing each segment of stakeholders to separate their allocation between LVL and LGO in a way that aligns with their particular interest in the protocol.
LVL is the native utility token of LEVEL, providing users with a range of utility functions within the platform, including:
Staking, where users can either earn platform revenue or LGO tokens by depositing their LVL tokens.
Incentives to reward platform participants, through liquidity provider rewards and other incentive programs (after vesting preLVL).
Burning LVL to acquire LGO at set intervals through Auctions.
As part of the the 2023 roadmap and LIP #23, LEVEL introduced preLVL.
LEVEL will no longer distribute LVL incentives directly to traders or liquidity providers, as rewards will be in an unvested version called preLVL
Users will have 2 choices to vest preLVL tokens: Normal or Accelerated vesting.
LGO is the native governance token of LEVEL, providing ownership and decision-making power within the LEVEL DAO. The LEVEL DAO holds governance power within the LEVEL ecosystem. As the creation of LEVEL was a fair launch, there was no LGO allocated to any party, whether team, community members, or users. We invite all these parties to become a part of the LEVEL DAO by staking LVL tokens in the LVL DAO Pool to earn LGO and growing their governance share in the DAO and hopefully contributing to its success.