iZUMi Finance Announces New DAO and veiZi NFT Governance Token

Key highlights:

• iZUMi Finance is launching its own DAO which will use veiZi, a unique governance token that functions as an NFT
• iZi holders will be able to lock their tokens to create veiZi NFTs 
• The veiZi NFTs will be stakeable for additional rewards

iZUMi Finance unveils a DAO powered by a NFT governance token

iZUMi Finance, a DeFi platform that offers programmable liquidity mining powered by Uniswap V3, is launching its own DAO. The iZUMi protocol helps project launch yield farming programs with improved capital efficiency and better liquidity, which can be concentrated in the most relevant price ranges.

The newly-announced iZUMi Finance DAO features a unique governance mechanism, implementing quadratic voting and the veiZi governance token.

veiZi tokens are different from most other governance tokens because they are compatible with the ERC-721 standard for non-fungible tokens (NFTs) on Ethereum. veiZi NFTs contain iZi tokens, and their voting power is determined by the number of tokens they hold. The maximum amount of time iZi tokens can be locked within veiZi is 4 years.

“ve” stands for vote escrow, and the concept has already been explored by other participants in the DeFi space like Curve and prominent developer Andre Cronje. In contrast to veCRV and ve(3,3), veiZi is both non-fungible and has a governance function.

iZi token holders will be able to mint veiZi NFTs by locking their tokens for a specified period of time. Alternatively, they can buy veiZi tokens from other users on standard NFT marketplaces such as OpenSea. 

The veiZi NFTs are also stakeable, with the project describing them as “interest-bearing NFTs”. After a veiZi NFT is staked, the holder can choose to extend both the locking period, as well as the number of locked tokens. According to iZUMi Finance, 50% of the protocol’s revenue will be used to buy back iZi tokens. These tokens will then be re-allocated to veiZi NFTs in accordance with each veiZi’s voting power. 

According to the iZUMi project, the launch of veiZi will serve to make iZi tokens more scarce, which is a positive for existing holders. It will also introduce new ways for users to earn staking rewards, and give them opportunities to boost farming pools. 

Of course, the DAO itself will also help decentralize iZUMi Finance further and give tokenholders the ability to influence key decisions related to the protocol.