The CEO of the open-source protocol Balancer, Fernando Martinelli, presented a proposal of adopting a vote-escrowed system similar to that of Curve Finance.
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If approved, the system will allow owners of the protocol's native BAL tokens to lock their assets for a certain period of time and get pegged "VE" tokens, in this case, veBAL.
The proposal mentions that developers of Balancer find that the change will improve the platform's tokenomics.
At present, BAL token holders can stake their assets to participate in the protocol governance. There is no locking mechanism in the current model. Balancer CEO wrote that the tokenomics of Curve corresponds to Balancer as well.Curve Finance allows CRV holders to earn yield, a share of protocol revenue and gives rights to vote on proposals. Unlike Curve, which allows users to lock CRV to receive veCRV, Balancer users would need to acquire Balancer Pool tokens to receive veBAL.
Balancer is an Automated Money Market launched on Ethereum in March 2020. Currently, its native token BAL trades at around $13.