Locking SPA

veSPA is SPA locked with the "vote escrow" mechanism (ve-). This is the mechanism of locking tokens for relatively long pre-defined time periods. On staking SPA, the staker receives non-tranferrable tokens veSPA.
The veSPA balance will depend on the amount of SPA tokens locked and the user's chosen lockup period. Stakers can lock their tokens for a maximum of 4 years or a minimum of 7 days. A higher lockup period means a higher veSPA balance for the same amount of SPA staked.
veSPA value = SPA tokens staked * (Lockup Period in days / 365)
Below table shows how veSPA value will be determined
Lock-up Period
SPA Tokens staked
veSPA value
4 year
1
4
3 year
1
3
2 year
1
2
1 year
1
1
6 months
1
0.5
veSPA balance will decay linearly with time. At the end of lockup period, veSPA balance will reduce to 0 or (0.01917*staked SPA tokens) based on the withdrawal method user chooses while staking the SPA. Two withdrawal methods are available to stakers
1.Stay Staked at Residual Value - Stakers can opt to remain staked at the end of the unlock date at a residual veSPA balance (0.01917*staked SPA tokens). They can initiate cooldown when 7 days are left in the staking period or anytime after. After the cooldown period of 7 days is over, they can withdraw the staked SPA tokens. Check outStay Staked at Residual Valuefor more details
2.Auto-cooldown - veSPA balance reduces to 0 at the end of lockup period and staker is able to withdraw locked SPA balance immediately after expiry date
Example of veSPA balance decay over time
Some important points to consider before locking your SPA tokens: 
1.Staking is an irreversible process, once locked the tokens cannot be unlocked before the unlock date. Users cannot prepone the expiry date or reduce the amount of locked SPA.
2.Due to precision issues it may not always be possible to choose an exact unlock date. Users can select the lockup period but the exact unlock date is rounded down to nearest Thursday UTC. Stakers will be able to choose these eligible unlock dates in our dapp.
3.Users rewards per week and voting power will also decrease over time, together with the veSPA balance. The users who are committed to long-term staking can increase their rewards per week and voting power by:
Extending the locking period
Locking more SPA
Claiming SPA staking rewards and restaking them into veSPA (compounding)
Extension of Lockup
Stakers can extend their lockup such that the lockup expiry date is <= 4 years from the current date. At no point, lockup period can be more than 4 years. 
 The lockup period cannot be extended in the following scenarios: 
1.When a staker’s lockup period has expired and they only have residual veSPA balance 
2.When a staker has already initiated cooldown period Example: If a user has 100 veSPA tokens which expire in 3 years, the user can increase the lockup by a maximum of 1 year.
Increasing Staked Balance
Users can also increase their veSPA balance by staking any additional amount of SPA tokens for the same lockup as their existing veSPA balance. 
Example: if a user has 100 veSPA tokens which are expiring in 34 days, they can stake any amount of additional SPA for 34 days. The increase in veSPA balance will be calculated based on the same lockup period as the previously staked tokens.

Staking Protocol

Withdrawing SPA

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Extension of Lockup

Increasing Staked Balance