Vote-escrowed (ve) tokenomics originated from Curve Finance's veToken model and has become a dominant governance framework across DeFi. In a ve system, users lock their tokens in smart contracts for a specified duration (typically 1-4 years) and receive a non-transferable veToken representing their voting power. This design solves the one-token-one-vote problem by making voting power proportional to both token amount and lock duration, incentivizing long-term alignment with protocol success. The ve model creates multiple economic layers: governance power, revenue sharing, and supply dynamics. Vote-escrowed tokens often qualify holders for a share of protocol fees or emissions, creating a direct economic incentive to participate. Since locked tokens are removed from the liquid supply, ve tokenomics naturally reduce circulating supply pressure, creating a counterbalance to ongoing emissions. Protocols like Curve, Balancer, and Aerodrome distribute protocol fees directly to veToken holders, making governance participation economically rewarding rather than purely political. Ve models introduce complexity around lock-ups and voting mechanics. Token holders face an opportunity cost—locked capital cannot be sold or used elsewhere—which requires protocols to provide sufficient governance influence and economic rewards to justify the lock-up. The design can create voting cartel dynamics where large holders coordinate to maintain power, though some newer ve implementations incorporate mechanisms like vote escrow decay and governance quadratic voting to reduce concentration.