# Introduction to $TRH

The main purposes of the Torah DAO token are to incentivise liquidity providers on the Torah Finance platform as well as getting as many users involved as possible in the governance of the protocol.

TRH (also known as $TRH) is Torah’s token. One can trade, exchange or swap with $TRH. TRH can be locked for some time to gain veTRH, Torah’s governance token that can be used to achieve several features: voting, boosting rewards and making proposals . Those three things will require you to lock your TRH for some time and acquire veTRH.

Torah DAO’s rights are sole and exclusive. Thus users can either accelerate **trading rewards** or **farming rewards** in **boost page** or **vote page** . Community members can participate in DAO governance with Torah's governing token veTRH.

{% hint style="info" %}
veTRH stands for vote-escrowed TRH, it is token produced by locking TRH for a period of time. The longer you lock TRH for, the more veTEH you receive.
{% endhint %}

### Understanding veTRH

The veTRH is the governance tokens or voting tokens of Torah Finance that users can obtain by pledging the TRH. veTRH and its distribution rules are obtained based on the time-weighting mechanism. This approach can provide longtime TRH holders with more governance weight and control over protocols.

Locking in the initial token allocation also has equal veTRH power. For example, the team's TRH tokens receive a veTRH for a 24-month lock-up period.

The longer the lock time, the more veTRH quantity is obtained. The specific formula is as follows:

veTRH quantity = TRH pledge quantity \* pledge time coefficient

Pledge time coefficient = days of pledge time / 1460

Among them, the choice of lock time is days, users can choose \[one week (7 days), January (30 days), March (90 days), June (180 days), 1 year (365 days), 2 years (730 days), 3 years (1095 days), 4 years (1460 days)] 8 options. The time coefficient of partial pledge is shown in the following table:

| Lock time | veTRH returned |
| --------- | -------------- |
| 1 year    | 0.25           |
| 2 years   | 0.5            |
| 3 years   | 0.75           |
| 4 years   | 1              |

**The veTRH has following properties:**

* The veTRH cannot transfer the money;
* As the locked TRH gradually approaches the maturity time, the balance of veTRH decays linearly;
* Holding veTRH can get **transaction fees** and **mint fee sharing**, **mining accelerator**, **trading accelerator , participate in governance voting**, etc.

### LOCK

Lock TRH to obtain veTRH.

* Extension time limit: the selected extension time is longer than the remaining time.
* Before unlocking, veTRH must be retrieved in order to unlock for TRH.

Because the unlock time is rounded down, you may be able to unlock your veTRH a few days earlier and get a veTRH with a slight deviation

{% hint style="info" %}
Example.

Suppose the lock period is 7 days, i.e. 604800 seconds, and the timestamp is 1654747730, and now it is to be locked for 7 days (604800 seconds) and the number of locks is 1, then

Unlock time = round down ((1654747730+604800)/604800)\*604800 = 1655337600

Expected to receive = Locked quantity \* (Locked time/(1460*24*3600)) = 1\*((1655337600-1654747730)/(1460*24*3600)) = 0.004676163749365804
{% endhint %}

### Staking (trading fees)

The most significant rewards for liquidity providers come from $TRH and transaction fee.

Torah finance charges a small transaction fee, of which **50%** goes to Liquidity Providers and **20%** to used to repurchase TRH, the other **30%** is distributed by a proposal led by the Torah DAO.

{% content-ref url="staking-your-usdtrh" %}
[staking-your-usdtrh](https://torahdao.gitbook.io/torah-finance/trh-token/staking-your-usdtrh)
{% endcontent-ref %}

### Boosting

Torah's incentive is the ability to increase your rewards for liquidity offered or trading rewards. Vote lock TRH allows you to get the right to vote in DAOs and get up to 3.3x boost on the liquidity or trades you offer on Torah.

The list will only show the acceleration multiplier if a trade bonus or a pledge bonus is generated. Each time an acceleration is configured, 100% of veTRH needs to be assigned out before it can be submitted successfully.

{% content-ref url="../reward-gauges/boosting-your-trh-rewards" %}
[boosting-your-trh-rewards](https://torahdao.gitbook.io/torah-finance/reward-gauges/boosting-your-trh-rewards)
{% endcontent-ref %}

### Voting

Once TRH holders vote-lock their veTRH, they can start voting on various DAO proposals and pool parameters. Voting is tentatively scheduled for two weeks per cycle, and each period can only choose to vote once or take out veTRH.

{% hint style="info" %}
For example, if you vote in this cycle, you can't take out veTRH; you need to wait until the next cycle to take out veTRH, you can't vote; you need to wait until the next cycle to vote.
{% endhint %}

{% content-ref url="../governance/proposals" %}
[proposals](https://torahdao.gitbook.io/torah-finance/governance/proposals)
{% endcontent-ref %}
