How does Lista DAO play a role in governance? The key lies in the veLISTA mechanism.

Locking LISTA to get veLISTA grants you voting rights and dividend eligibility. In simple terms, it means putting real money on the line for long-term support, and only then does the protocol give you a say—this both aligns interests and reduces selling pressure. Currently, 53.73 million LISTA are locked, accounting for about 14% of the total supply, which in itself shows the community’s confidence in long-term development.

In practical governance, what can veLISTA holders decide? Whether to adjust the collateralization ratio, add new assets, or change fees—all are determined by the community. For example, Proposal LIP-021, where the community voted to burn 20% of the tokens, demonstrates the efficiency and transparency of decentralized decision-making, something traditional financing methods simply cannot achieve. Compared to a single team’s decision, this model clearly aligns more with the original spirit of Web3.

The incentive mechanism is the secret to ensuring participation. veLISTA holders can share in various revenues generated by the protocol—such as lending fees, unlock fees, and more. Moreover, the longer the lock-up period, the greater the rewards. This naturally encourages token holders to focus on the protocol’s long-term value rather than daily price fluctuations. This approach is fully consistent with Lista’s goal of building a sustainable ecosystem. While the ve model isn’t a new invention, combining it with LSDFi business opens up new possibilities for DeFi governance.