veVCI stands for vote escrowed VCI, it's a locker where users can lock their VCI for different lengths of time to gain voting power.
CRV holders can vote lock their VCI into the Vinci DAO to receive veVCI. The minimum lock period is 1 week and up to 4 years. The longer they lock for, the more veVCI they receive. Vote locking allows you to vote in governance, boost your VCI rewards and receive protocol fees.
When vote locking VCI, you will also earn a boost on your lending and borrowing rewards of up to 2.5x. The goal is to incentivise users to participate in governance by rewarding them with a bigger share of the daily VCI inflation.
1 VCI locked for 1 year = 0.25 veVCI.
1 VCI locked for 2 years = 0.5 veVCI.
1 VCI locked for 3 years = 0.75 veVCI.
1 VCI locked for 4 years = 1 veVCI.
As the lock time decreases, the veVCI balance decreases proportionally; the lock time and amount cannot be altered except when the holders want to extend lock time or increase the lock amount.