## What is VCX?
VCX is a governance token that aligns incentives across all VaultCraft stakeholders and is designed to further optimize the following:
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* **Protocol revenue**
* **Smart Vault yield**
* **VaultCraft utilization**
* **Token liquidity**
* **Token velocity**
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## **New Features**
VCX is required to participate in protocol governance and is used for liquidity provisioning specifically to be able to vote on how rewards are distributed to Smart Vault gauges. This disincentivizes farming-and-dumping and encourages long-term liquidity provisioning by aligning the interests between LPs and VCX holders.
* **Vote-locked VCX is now a Balancer LP token** - VaultCraft uses the Balancer 80VCX-20WETH LP token as the lock token, meaning you need to lock the 80VCX-20WETH LP token to vote on where rewards are distributed
* **Gauges** - Staking contract on Smart Vaults that are distributed oVCX according to your vote-escrowed VCX LP position
* **Reward token is now a call-option for VCX** - Reward tokens are now call options on VCX (**oVCX**), enabling the protocol to accumulate much more in cash reserves regardless of market conditions, as well as letting loyal VCX holders buy VCX at a discounted price.
* **Max boost enabled for Smart Vaults** - VaultCraft gives a 5X max boost to LPs who have vote-escrowed VCX LP
#### VCX
* A governance token for incentivizing liquidity
#### veVXC (vote-escrowed VCX LP)
* veVCX is based on Curve’s [veCRV 1](https://curve.readthedocs.io/dao-vecrv.html)
* Used for voting for governance proposals
* Used for voting on gauge weights
#### oVCX
* oVCX is a call option token for VCX that lets its holder purchase VCX at a discount to the market price. oVCX does not expire.
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