For veNEST Lockers

$veNEST holders access multiple value streams:

• Trading Fees: 100% of fees from voted pools.

• $MEGAHYPE Rewards: Exclusive distributions from the HYPE Engine.

• Voting Incentives: Token rewards from ecosystem protocols who incentivise their own pools.

• Compounding Power: Auto-compounding voting power and rewards through the HYPE Engine Vault.

Vote-Escrow System

nest employs a vote-escrow system for governance. Anyone who holds $NEST can lock tokens for up to 6 months and in return receive a $veNEST NFT that is bound by a linear relationship:

• 100 $NEST locked for 6 months becomes 100 $veNEST

• 100 $NEST locked for 3 months becomes 50 $veNEST

• A shorter lock period reduces voting power and revenue potential.

Each NFT gives the holder the right to vote each epoch on which liquidity pools should receive emissions, and in return receive 100% of revenue from voted pools.

Automation

If you have a life and you're not living in your mums basement, nest simplifies life by automating the voting and reward collection process via the HYPE Engine vault with additional $MEGAHYPE rewards. You can also select the "Auto-Max" lock feature which maintains $veNEST at maximum voting power, removing the need for continuous relocking but requires manual voting each epoch.

Lock Management

There are different actions users can make to manage $veNEST positions:

• Increase: Both manual and HYPE Engine Vault $veNEST positions can be increased by depositing more $NEST

• Extend: This allows users to extend the duration of the lock to increase voting power. This is not required if "Auto-Max" is selected or if $veNEST is deposited in the HYPE Engine Vault.

• Merge: Two $veNEST positions can be merged to create a single larger NFT.

• Transfer: This enables anyone to send a $veNEST position to another wallet.

• Unlock: Following the expiration of the lock period, this enables the withdrawal of liquid $NEST

• Auto-Max: Maintaining maximum voting power can be toggled on and off at any time.

Governance Maxis

The short lock duration is designed to provide a more accessible platform to nest governance. $veNEST holders who do not select "Auto-Max" or deposit into the HYPE Engine Vault will experience a decay mechanism. This means that if you do not increase your lock time, your voting power and revenue potential will reduce every epoch. If a 6 month lock is left to decay, voting power reduces by 4% each epoch. Conversely, if $veNEST is maintained at maximum voting power, voters will receive maximum revenue from the pools they vote for. This system encourages positive-sum participation in nest governance, ensuring that the most committed $veNEST holders receive maximum capacity to direct $NEST emissions and protocol rewards.