One innovative aspect of Aelin ecosystem is the integration of veNFTs, a unique form of governance token. Unlike traditional governance tokens, veNFTs can be traded on secondary markets, providing VELO holders with an alternative exit option for their locked tokens, or even the ability to use veNFTs as collateral in other pools.
Typically, users locking their tokens for governance power and enhanced rewards face the challenge of potentially missing out on quick market movements, since their capital is tied up. veNFTs resolve this issue, offering a balance of commitment and flexibility. The integration of veNFTs transforms the governance token veVELO into a tradable asset, increasing capital efficiency while keeping the tokens locked, benefiting both the protocol and the token holders.