# vlY2K

After [YIP:1](https://snapshot.org/#/y2k-finance.eth/proposal/0xf06c87e7a823fa33907834e3451be50fef1f7e792da1f0fe8b06b0d08d44234d) has successfully passed, we are ready to introduce $Y2K and $vlY2K.

$Y2K is the governance token that will be used to define important parameters of the Y2K ecosystem. $Y2K is available for trading in the following Balancer Pool: [Y2K : wETH](https://app.balancer.fi/#/arbitrum/pool/0x569061e2d807881f4a33e1cbe1063bc614cb75a40002000000000000000002bb)

$Y2K can be further locked for $vlY2K, allowing lockers to accumulate a larger share of governance power and accrue protocol fee revenue. Note that vanilla **$Y2K** is not eligible for protocol revenue distributions.

$vlY2K is a locked 80Y2K:20wETH BPT. The BPT is a Balancer Pool Token that serves as the liquidity base for Y2K, this token can be obtained by providing liquidity in the Y2K Balancer pool. More information on BPT’s is available: [here](https://vote.balancer.fi/#/proposal/Qmcyn5zdoGQs8nbo1nFroZiG2jWb8UEFPH9Y18cga3ESCJ). This pool token can be locked for 2 periods: **16** weeks and **32** weeks. Note that $vlY2K is non-transferable.

**Obtaining $vlY2K**

IFO Participants

* Claim $Y2K rewards on the “Claim Page”
* Provide 80Y2K : 20wETH Liquidity to the Balancer pool
* Lock the LP token for 16 or 32 weeks on the “Lock” page of the Dapp

New Participants

* Buy $Y2K on the [Balancer Pool](https://app.balancer.fi/#/arbitrum/pool/0x569061e2d807881f4a33e1cbe1063bc614cb75a40002000000000000000002bb)
* Provide 80Y2K : 20wETH Liquidity to the [Balancer pool](https://app.balancer.fi/#/arbitrum/pool/0x569061e2d807881f4a33e1cbe1063bc614cb75a40002000000000000000002bb)
* Lock the LP token for 16 or 32 weeks on the “Lock” page of the Dapp

**Locking**

As mentioned above, $Y2K holders will be able to provide liquidity in the Balancer LP and lock that LP token for $vlY2K. The lock has 2 periods: **16 weeks and 32 weeks.** 32 week lockers will receive **2x** more protocol fees and governing power than 16 week lockers to ensure protocol alignment.

**Fee Accrual**

**$vlY2K** holders are eligible for **50%** of all protocol fees generated on Y2K, the other **50%** is reserved in the **DAO** Treasury for protocol maintenance, this allocation is based on the ongoing [YIP:2 proposal](https://snapshot.org/#/y2k-finance.eth/proposal/0x3173123a57052751ef8cc6fe7c085d77ff085194f1d1122e0e3596ad98a98301) which is set to conclude on December 20th.

Locks are grouped into weekly vl Y2K epochs which start on Friday December 23rd at 23:59 UTC. Deposits during the current epoch do not count towards currently active epoch fee distributions. Users need to lock their $Y2K for $vlY2K before the beginning of the epoch to be eligible for protocol revenue of that epoch. The first epoch will begin on Friday December 23 at 23:59 UTC, and will follow a weekly structure thereafter, as such, users need to lock prior to December 23 23:59 UTC to be eligible for epoch 1 rewards.

<figure><img src="https://miro.medium.com/max/700/1*aHZ9eaWpdh94R2d4S5wrVg.png" alt=""><figcaption></figcaption></figure>

Note: the first epoch will be allocated 50% of all of the IFO protocol fees on top of the current vault epoch revenue. Hence the first $vlY2K epoch will have a vastly outsized reward rate.

**Governing Power**

Based on the outcome of [YIP:1](https://snapshot.org/#/y2k-finance.eth/proposal/0xf06c87e7a823fa33907834e3451be50fef1f7e792da1f0fe8b06b0d08d44234d), $Y2K tokens have 1 vote, $Y2K locked for 16 weeks have 5 votes, $Y2K locked for 32 weeks have 10 votes.

**Gauge System to determine Liquidity Mining distributions**

Currently, liquidity mining emission direction is done via a pre-launch team member committee. With the introduction of $vlY2K a portion of liquidity mining emission direction will be done via a gauge system.

Gauges are contracts that allow $vlY2K lockers to direct which markets (vaults) to allocate $Y2K emissions to. Gauges will follow Snapshot votes that will include all available markets, with $Y2K token emissions being allocated to the said markets based on the outcome of the vote. The voting power of $vlY2K will be based on the lock period.

Decentralizing the emissions allocations allows for a Bribe Market to establish around the said emissions, and $vlY2K holders will be able to rent out their voting rights on the [Hidden Hand](https://hiddenhand.finance/) marketplace soon after launch of the Gauge system.


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