What is $DILL?
A governance utility token received when users lock $PICKLEs for a set amount of time. Holding $DILL allows users to participate in vote-locking, which is a modified form of governance staking. This prevents governance attacks and aligns incentives between voters and long-term holders.
$DILL allows users to participate in a soft form of governance, meaning that $DILL can only influence directly the logic in those contracts of the protocol in which $DILL governance has been enabled fully or partially.
At the moment, the only contract that has $DILL governance enabled on-chain is the Gauge Proxy, which determines how emissions to farms in the Ethereum mainnet are distributed. Notably, there are farmed emissions outside of the Ethereum mainnet and there are also uses of emissions outside the farms. None of these are controlled directly by $DILL.
However there are imminent plans (within the last quarter of 2022) to allow for cross chain emissions to be controlled directly by $DILL holders! Stay tuned.
$DILL (sometimes known as vePICKLE or vote-escrow Pickle) provides holders with several benefits. These benefits are:
- Participation in ‘soft governance’: 1 $DILL represents 1 vote and allows participation in activities such as Snapshot voting and on-chain governance
- Farm Weight Voting Rights: $DILL holders get to set which farms get $PICKLE emissions
- Boosted Farm Rewards of up to 2.5x, $DILL holders get additional weighting in the Pickle farms
- Weekly Revenue Share: 100% of weekly revenues to be paid out to $DILL lockers, of which 50% is represented by the Treasury
- Anti-Dilutive Reward: another reward paid out in $PICKLE to $DILL distributions
These benefits are explained in detail here.
$DILL represents your balance of $PICKLEs that have been vote-locked, weighed for the time remaining in the lock. The longer the time remaining in the lock, the more $DILL you will have for the same amount of locked $PICKLEs.
With $DILL, the following things are NOT possible:
- Decreasing your lock time
- Decreasing the amount of $PICKLEs locked
- Transferring your $DILL balance to another wallet
Once a $DILL lock is created, the lock will continue on your wallet address until expiry and cannot be transferred or undone in any way. Creating, extending, and increasing locks are irreversible actions.
Your $DILL balance will decrease linearly over time. Your $PICKLE tokens do not decay. All funds are safu.
Towards the end of your lock, your $DILL balance will approach 0. On expiry of your lock, all of your deposited $PICKLE tokens will be released at once – you do not need to perform an “unlock transaction” or anything of the sort.
The only two ways to mitigate this decay are to:
- Extend your lock or increase your lock with more $PICKLEs
- Re-lock your dilutive rewards received