vlPUFFER: Voting & Locking for PUFFER

This document explains how the vlPUFFER system works in simple terms. vlPUFFER is a voting system where you lock your PUFFER tokens to gain voting power.

How It Works

• You lock your PUFFER tokens for a period of time (30 days to 2 years)
• The longer you lock, the more voting power (vlPUFFER tokens) you receive
• Your vlPUFFER tokens cannot be transferred - they represent your voting power
• Once your lock period ends, you can withdraw your original PUFFER tokens

Multiplier System

The amount of vlPUFFER (voting power) you receive depends on how long you lock:

Lock Duration	Multiplier
30 days	1x
3 months	3x
6 months	6x
9 months	9x
12 months	12x
18 months	18x
24 months	24x

For example, if you lock 100 PUFFER for 12 months, you'll receive 1200 vlPUFFER tokens.

Entry Points (How to Lock)

1. Create a new lock - Lock your PUFFER tokens for the first time
2. Create a lock with permit - Lock your tokens in a single transaction
3. Re-lock - You can:
   • Add more PUFFER to your existing lock
   • Extend your lock duration
   • Both add more tokens and extend the duration to get more vlPUFFER tokens

Minimum lock amount: 10 PUFFER

Exit Points (How to Unlock)

1. Withdraw - Once your lock expires, you can withdraw your PUFFER tokens
2. Get kicked - If you don't withdraw within 1 week after expiry, anyone can "kick" you:
   • The kicker receives 1% of your PUFFER tokens
   • The remaining 99% are returned to you automatically

Vote Delegation

vlPUFFER supports vote delegation, allowing you to:

• Delegate your voting power to another address (including yourself)
• By default, new locks are automatically self-delegated if you haven't chosen a delegate
• Delegation is handled by OpenZeppelin's lib/openzeppelin-contracts/contracts/governance/utils/Votes.sol contract

Multiple Account Strategy

You can optimize your locking strategy using multiple accounts:

1. Create different locks with different durations from separate accounts
   • For example: 3 months in one account, 12 months in another, 24 months in a third
2. Delegate the voting power from all these accounts to your main account
3. This gives you flexibility to have different unlock schedules while concentrating voting power

Interaction Flow

graph TD
    User([User]) --> Lock["Create Lock"]
    User --> LockPermit["Create Lock with Permit"]
    User --> Relock["Re-lock (extend/add)"]
    
    Lock --> vlPUFFER[("vlPUFFER (Voting Power)")]
    LockPermit --> vlPUFFER
    Relock --> vlPUFFER
    
    vlPUFFER --> |"Lock expires"| Withdraw["Withdraw PUFFER"]
    vlPUFFER --> |"Lock expires + 1 week"| Kick["Get Kicked"]
    vlPUFFER --> Delegate["Delegate Votes"]
    
    Withdraw --> PUFFER[("PUFFER Tokens")]
    Kick --> |"99%"| PUFFER
    Kick --> |"1%"| KickerFee["Kicker Fee"]
    
    Account1([Account 1]) --> Lock1["Lock (3 months)"]
    Account2([Account 2]) --> Lock2["Lock (12 months)"]
    Account3([Account 3]) --> Lock3["Lock (24 months)"]
    
    Lock1 --> vlPUFFER1["vlPUFFER"]
    Lock2 --> vlPUFFER2["vlPUFFER"]
    Lock3 --> vlPUFFER3["vlPUFFER"]
    
    vlPUFFER1 --> |"Delegate"| MainAccount["Main Account (Combined Voting Power)"]
    vlPUFFER2 --> |"Delegate"| MainAccount
    vlPUFFER3 --> |"Delegate"| MainAccount

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Important Notes

• You can only withdraw after your lock period ends.
• You can only have one lock at a time.
• Your vlPUFFER tokens cannot be transferred to other addresses
• If you don't withdraw within 1 week after lock expiry, anyone can kick you and receive 1% of your PUFFER tokens
• Re-locking cannot result in less voting power than you currently have
• When re-locking, the new lock duration must be longer than your current lock

Security

BlockSec - vlPUFFER