> For the complete documentation index, see [llms.txt](https://docs.laraprotocol.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.laraprotocol.com/lara-staking/explaning-usdvelara.md). # Explaning $veLARA ## Maturity period debunked As voted on by the Lara community in its first [DAO proposal](https://snapshot.org/#/laradao.eth/proposal/0xac59595a36b1288d257e2b41523bef4bcfa691bff6201cac9eea757f60f69fee), `$veLARA` tokens have a maturity period of 6 months and a linear exchange rate. This simply means that from the moment you claim `$veLARA` tokens as a staking reward you need to wait 6 months to be able to redeem it `1:1` in the Lara Protocol. You can redeem it earlier too, but it will proportionally be worth less `$LARA` the quicker you redeem it. All `$veLARA` redeemed is instantly burnt. {% hint style="info" %} Example: \ Bob claimed 1000 `$veLARA` as staking rewards today. If he is: * redeeming them the next day, he's getting a very very small amount of `$LARA` for it. * redeeming them in 3 months, he's getting exactly 500 `$LARA` for it. * redeeming them in 6 months, he's getting the full 1000 `$LARA` for it. * redeeming after the 6 months have passed doesn't add a multiplier to the value, Bob will still get 1000 `$LARA` for his `$veLARA`. {% endhint %} ## What $veLARA is vs isn't The token is a vested version of the token. It serves as a way of locking supply and optimizing emission rates of the underlying token. ### Why is $veLARA good for the $LARA ecosystem * Through introducing `$veLARA`, we keep inflation and additional token emissions as low as possible. * `$veLARA` serves as a receipt for your future claimable `$LARA`. * Having vested staking rewards we're enforcing protocol usage by minimising negative price pressure. * Enhances the voting power of people who actively partake in the Lara Protocol. ### What $veLARA isn't * Although you have full access to trade or transfer `$veLARA` tokens, they are not designed to be a freely tradeable asset with a secondary market in place. {% hint style="danger" %} When someone claims `$veLARA` tokens as staking rewards, only that address can redeem them for `$LARA.` `Example:` `Bob staked 1000 $LARA and claimed 50 $veLARA as staking rewards. Then, Alice buys the 50 $veLARA from Bob and then tries to redeem $LARA tokens for it. Alice will fail redeeming because Bob is the only one that can exchange those 50 $veLARA tokens for $LARA.` {% endhint %} --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.laraprotocol.com/lara-staking/explaning-usdvelara.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.