> For the complete documentation index, see [llms.txt](https://docs.townsq.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.townsq.xyz/next-gen-incentive-for-next-gen-yield-assets/vetown-for-pools-and-vaults/town-vote-escrow-v1.md).

# TOWN Vote Escrow V1

Vote Escrow V1 of TOWN enhances liquidity for asset deposits in different liquidity pools by creating vote escrow emission gauges for different pools. An example lending market goes as follows:

* Pool 1: USDC
* Pool 2: USD1
* Vault 1: U (United Stables)
* Vault 2: XAUE

For different participants in the ecosystem, there are different incentives, powered by the voting power of veTOWN and the emissions.

* Holders of TOWN: can lock TOWN and escrow into veTOWN, which can be used to vote for one or multiple Pools. TOWN holders receive linearly increasing voting power in veTOWN the longer it is locked, similar to how veCRV is determined by the lock time of CRV.
* veTOWN: voting power that is gained with locked TOWN that can be used to vote for Pools to receive emissions.
* Gauge (*g*) & Weight (*w*): each Gauge represents each Pool's voting power of veTOWN. Weight means how much of the total voting power a Gauge has, represented in a %.
* Emissions: Emissions of TOWN token are distributed to the Depositors of a Gauge based on how much veTOWN voting power a Pool receives. Pools 1-2 and Vaults 1-2 receive TOWN emissions pro rata from the veTOWN voting power it receives.:

  * Example: a total of 1000 veTOWN is voted into Pools 1-2 and Vaults 1-2. Pool 1 has 2500, Pool 2 has 2500, Vault 1 has 2500, and Vault 2 has 2500,. In an Epoch where there are a total Emission of 100,000 TOWN, Pool 1 would receive 25% of the emission, Pool 2 also 25%, Vault 1, 25%, Vault 2, 25%.
  * The emission calculation of each Gauge is as follows:

  $$
  E\_g = E\_{\text{epoch}} \cdot \frac{w\_g}{\sum\_i w\_i}
  $$
* Lenders: Lenders who deposit liquidity into the pools receive TOWN emissions based on how much of the Pool that the Lender's liquidity is.
* Borrowers: Borrowers of the Pool liquidity receive TOWN emissions based on how much of the Pool that the Borrower has borrowed.
* Epoch: a 7-day period by the end of which Emission tokens are distributed to a Pool's lenders and borrowers as claimable reward.


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