veTokens Lock Users Into Inflexible Positions

Many DeFi platforms use veTokens like veCRV or veLYNX, which require users to lock their tokens for a long time (sometimes up to 4 years) to gain full voting power. This lock-in period reduces the ability to use those tokens elsewhere, limiting flexibility and discouraging users who prefer short-term access or want to use their tokens in other parts of the DeFi ecosystem.

As of May 12, 2025, Curve's veCRV has a market cap of approximately $1.03 billion. A big portion of CRV is locked in the Curve protocol, with a total circulating supply of 1.34 billion tokens out of a maximum supply of 3.03 billion (Source: CoinMarketCap). This makes it hard for users to rotate or reallocate their capital easily.