Vote Escrowed Token (veToken)
The Vote Escrowed Token (veToken) model is a soft sink mechanism pioneered by Curve Finance. The model has been used extensively by several projects in the pursuit of 1) maximizing the governance utility of committed community members and 2) reducing the circulating supply.
The model differs by implementation, but generally, token holders have to lock tokens for a period that is between 1 week to 4 years to access the token's utility. The longer participants lock tokens, the more utility value they receive, which decays linearly over the lock.