> For the complete documentation index, see [llms.txt](https://team57.gitbook.io/lighthouse-exchange/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://team57.gitbook.io/lighthouse-exchange/overview/tokenomics.md).

# Tokenomics

Initial supply of $LIGHT will be set at 400 million.

Weekly emissions started at 15M (3.75% of the initial supply) and decay at 1% per week (epoch). Ensuring for a more sustainable project by having the emissions decay.

***

Lighthouse Exchange uses two tokens to manage its utility and governance:

$LIGHT — BEP-20 utility token of the protocol 

$veLIGHT — a governance token that comes in the form of an NFT. Lock $LIGHT to receive this token. 

$LIGHT tokens are given to those who provide liquidity, a process known as emissions.

For governance purposes, $veLIGHT is used. Holders of $LIGHT can choose to lock (vote-escrow) their tokens. In return, they receive $veLIGHT, which is also referred to as Lock or veNFT. It's possible to add more tokens to your $veLIGHT NFT whenever you want.

The length of time you lock your tokens for can vary up to 4 years. This period is known as the vote-escrowed period, which is why it has the 've' prefix. The way it works is simple: if you lock 100 $LIGHT for 4 years, you get 100 $veLIGHT. But if you lock them for just 1 year, you only get 25 $veLIGHT. Essentially, the longer you lock your tokens, the more $veLIGHT you get, which means greater voting power.

With the updated version, LIGHT v2, you can opt for a permanent lock on your veNFT. This means the protocol will always consider these Locks (veNFTs) as being locked for the full 4 years, so their voting power remains strong and doesn't decrease over time.


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