> For the complete documentation index, see [llms.txt](https://token.metasignals.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://token.metasignals.io/tokenomics/vote-escrow-governance/what-is-vemsig.md).

# What is veMSIG?

{% hint style="info" %}
The values and parameters on this page are preliminary and subject to change before launch.
{% endhint %}

When MSIG tokens are locked in the vote-escrow system, **veMSIG** (vote-escrowed MSIG) is received in return. The veMSIG balance determines subscription discounts, governance voting power, and staking reward eligibility.

{% hint style="info" %}
**veMSIG** is non-transferable. It represents a holder's commitment to the ecosystem and determines access to benefits. The longer MSIG is locked, the more veMSIG is received.
{% endhint %}

## How veMSIG is Calculated

The amount of veMSIG received depends on two factors: the number of MSIG tokens locked and the lock duration. Longer lock periods yield more veMSIG for the same token amount.

$$
\text{veMSIG} = \text{MSIG} \times \left( \frac{\text{lockMonths}}{24} \right)
$$

**Where:**

* **veMSIG** = vote-escrowed MSIG received
* **MSIG** = amount of MSIG tokens locked
* **lockMonths** = duration of the lock in months (1-24)

## veMSIG Examples

| MSIG Locked | Lock Duration | Calculation      | veMSIG Received   |
| ----------- | ------------- | ---------------- | ----------------- |
| 10,000      | 24 months     | 10,000 x (24/24) | **10,000 veMSIG** |
| 10,000      | 12 months     | 10,000 x (12/24) | **5,000 veMSIG**  |
| 10,000      | 6 months      | 10,000 x (6/24)  | **2,500 veMSIG**  |
| 10,000      | 1 month       | 10,000 x (1/24)  | **417 veMSIG**    |

## Key Mechanisms

Unlike regular tokens, veMSIG behaves differently by design. These properties ensure the system rewards genuine long-term commitment.

<table><thead><tr><th width="218.800048828125">Mechanism</th><th>What it means</th></tr></thead><tbody><tr><td><strong>Non-transferable</strong></td><td>veMSIG cannot be sold, transferred, or traded. It remains in the holder's wallet and represents that holder's stake in the ecosystem.</td></tr><tr><td><strong>Linear decay</strong></td><td>The veMSIG balance decreases over time as the lock approaches expiration (see <a href="/pages/SRwTtwrf2krF2uZ4TQBT">Staking Lockup</a>).</td></tr><tr><td><strong>Maximum lock (24m)</strong></td><td>Locking for the full 24-month period grants 1:1 veMSIG per MSIG locked, while shorter lock durations receive proportionally less.</td></tr></tbody></table>