# veSVY and Utility The vote-escrow token (veToken) model is designed to align incentives between users and the protocol by encouraging token holders to stake protocol tokens long-term to earn veTokens. The longer the tokens are staked, the more veTokens are earned, which equates to more weight in governance voting and higher rewards. veToken model of Savvy is built on the primers created by DeFi protocols like as Curve, Balancer, Platypus, and Trader Joe. Savvy uses a no-lockup veToken model, where users can freely stake and unstake their SVY tokens to earn veSVY tokens. The claimed veSVY tokens are non-transferable and non-sellable. If a user unstakes their SVY, their veSVY balance is reset. Each staked SVY token generates 0.014 veSVY every hour, and a user's veSVY balance can accrue up to 100x the staked SVY balance. Current and planned future utility of veSVY is as follows: ### Savvy Booster As explained in detail on the [Savvy Booster](/savvy-defi-faq/savvy-booster.md) page, accumulating veSVY includes borrowers in the reward distribution and enables faster repayment of lines of credit. ### Savvy DAO veSVY gives voting power on protocol decisions including the deployment of [DAO](/savvy-dao/governance-overview.md) funds. ### Gauge voting Savvy is developing Curve-like bribe structure for reward rates for the Booster accross different strategies. veSVY will be used to vote on the weight of the incentives. --- # Agent Instructions: 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: ``` GET https://docs.savvydefi.io/tokenomics/vesvy-and-utility.md?ask= ``` The question should be specific, self-contained, and written in natural language. 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.