> For the complete documentation index, see [llms.txt](https://xmaquina.gitbook.io/xmaquina/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://xmaquina.gitbook.io/xmaquina/overview/tokenomics/vetoken-model.md).

# veToken Model

To take part in governance and share in the value created by the XMAQUINA ecosystem, DEUS holders stake their tokens in a vote‑escrowed model called xDEUS. Inspired by successful designs such as Curve Finance’s veCRV, this approach rewards long‑term commitment and active contribution while addressing key legal and operational requirements.

<figure><img src="/files/vz5AgZW9gMGL5rEtTOGl" alt=""><figcaption></figcaption></figure>

### How It Works

**• Time-Based Staking**

DEUS holders lock their tokens for a fixed period to receive non-transferable xDEUS. The longer the lock, the more benefits. This increases both governance power and eligibility for rewards, encouraging sustained participation over short-term speculation.

**• Governance Power**

xDEUS holders govern the DAO. They vote on treasury strategy, SubDAO approvals, capital allocation, and ecosystem upgrades. Influence is directly tied to long-term commitment, ensuring that those most aligned with the mission shape its future.

**• Economic Alignment**

Locked tokens are removed from circulation, reducing liquid supply and helping stabilize the token economy. This model discourages volatility and strengthens the foundation for sustainable growth.

**• Governance Filtering**

Only staked DEUS counts in governance. This naturally filters out inactive or speculative holders, concentrating decision-making power in the hands of active participants who are aligned with the mission and incentivized to steward the ecosystem responsibly.

### **Why It Matters for XMAQUINA**

In a capital-intensive sector like Physical AI, long-term, mission-aligned governance is essential. The xDEUS model ensures that those who govern the system are committed to its success. It also unlocks a compliant, transparent mechanism for distributing value to contributors, creating a flywheel where staking, governance, and ecosystem growth are mutually reinforcing.