# Governance

### **Understanding Governance**

To vote on the SHUI DAO, users need to lock vote lock their SHUI. By doing so, participants can earn a boost on their provided liquidity and vote on all DAO proposals. Users who reach a voting power of 1000 veSHUI can also create new proposals. There is no minimum voting power required to vote.

#### **Voting Power**

veSHUI stands for vote-escrowed SHUI. It's a mechanism where users can lock their SHUI tokens for varying lengths of time to gain voting power. Users can choose to lock their veSHUI for a time period ranging from one month to four years. The longer the voting escrow duration, the more stake they hold, which results in increased voting power.

A user's voting power gradually decreases over time until it reaches zero at the time of unlock. For instance, if a user decides to lock 100 SHUI for one years, they will initially receive 100 veSHUI. After 3 months, due to the constant decay, the user's veSHUI balance will reduce to 75 veSHUI, then to 50 veSHUI after 6 months, etc... until it finally zeroes out after whole years.

The existing lock can be extended at every point in time, resulting in a increased veSHUI balance again.


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