> For the complete documentation index, see [llms.txt](https://docs.vetro.org/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.vetro.org/governance/vetro-token.md).

# VETRO Token

VETRO (V) is the protocol's governance token, deployed as an ERC-20 on Hemi with LayerZero OFT for multi-chain presence on Ethereum and other networks. VETRO is burnable and serves as the entry point to governance participation.

## Token Distribution

The token distribution is structured to incentivize long-term alignment, with allocations for:

* Core team
* Investors
* Ecosystem development
* Community distribution via a claim drop mechanism targeting veHEMI stakers, VSP holders, and early VUSD minters

The community distribution targets existing aligned communities with the goal of absorbing them into the VETRO ecosystem and aligning them with long-term protocol success through locked governance positions.

## Locking VETRO

VETRO can be locked to receive **veVETRO** — a time-weighted governance position that grants:

* Voting power over protocol parameters
* A share of protocol revenue
* Participation in incentive allocation (gauge voting)

Longer lock durations produce proportionally more veVETRO. Voting power decays toward expiry.

## Early Exit Mechanism

Unlike traditional vote-escrow systems where locked tokens are completely illiquid, veVETRO implements a feature that allows early exit with a penalty:

| Time Locked   | Time Remaining | Haircut Penalty | User Receives |
| ------------- | -------------- | --------------- | ------------- |
| e.g., 1 year  | e.g., 3 years  | 80%             | 20%           |
| e.g., 2 years | e.g., 2 years  | 50%             | 50%           |
| e.g., 3 years | e.g., 1 year   | 20%             | 80%           |

All slashed tokens are **burned**, permanently reducing total VETRO supply.


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:

```
GET https://docs.vetro.org/governance/vetro-token.md?ask=<question>&goal=<endgoal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.

The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.