# VeToken and Reward Calcualtion
As the Governance token, veNUSA will represent your voting influence and reward portion. The amount of veNUSA you can own is influenced by the amount of NUSA locked and the duration of the lock. veNUSA is uniquely made to decrease overtime towards the end of lock duration, hence, you will need to understand thoroughly on how veToken works.
## veNUSA amount will gradually decrease as times
Let's take a look at Alex's experience:
Alex locked 4 NUSA for 4 years on Nusa Governance program.
According to the veNUSA formula, he will get 4 veNUSA.
1 year later, his veNUSA amount becomes 3 veNUSA. After 4 years has been passed, the veNUSA amount will become 0.
When his veNUSA turns 0, it will trigger an unlock option where he can get his locked NUSA back.
## veNUSA amount represents the portion of reward received
### 1st Week example
Alex locked 4 NUSA for 4 years on Nusa Governance program. According to the veNUSA formula, he will get 4 veNUSA.
Sabrina locked 4 NUSA for 1 month on Nusa Governance program. According to the veNUSA formula, she will get 0.08 veNUSA.
Let's assume that they are the only holder participating this week, which means that there are 4.08 veNUSA participating that week (Alex 4 + Sabrina 0.08).
In the first week, $2,500 reward is being distributed. Based on the veNUSA owned, Alex will have 98% (4/4.08) of shares and Sabrina will have 2% (0.08/4.08) shares.
On distribution day, Alex will get $2,449 and Sabrina $51.
| 1st Week | Alex | Sabrina |
| --------------- | -------- | ----------- |
| NUSA locked | 4 NUSA | 4 NUSA |
| Lock duration | 4 years | 1 month |
| veNUSA owned | 4 veNUSA | 0.08 veNUSA |
| Share portion | 98% | 2% |
| Reward received | $2,449 | $51 |
### 2nd-week example
In the second week, Clemira joined the Nusa governance program.
Clemira locked 10 NUSA for 1 month on Nusa Governance program. According to the veNUSA formula, she will get 0.21 veNUSA.
Alex and Sabrina are still participating in the program because they already locked their NUSA and still own veNUSA.
But in the second week of distribution, their veNUSA amount is already decreased. According to the formula, in the second week, Alex will have 3.98 veNUSA and Sabrina 0.06 veNUSA (decreasing from 4 and 0.08 veNUSA compared to the first-week amount).
Based on that we can calculate that the total circulating veNUSA is 4.25 (Alex 3.98 + Sabrina 0.06 + Clemira 0.21) veNUSA.
In the first week, $2.500 reward is being distributed. Based on the veNUSA owned, Alex will have 94% (3.98/4.25), Sabrina 1% (0.06/4.25), and Clemira will have 5% (0.21/4.25) share.
By the end of the second week of distribution, Alex will get $2,340, Sabrina $38, and Clemira $122.
| 2nd Week | Alex | Sabrina | Clemira |
| --------------- | ------------------------------------------------------- | ------------------------------------------------------- | ----------- |
| NUSA locked | 4 NUSA | 4 NUSA | 10 NUSA |
| Lock duration | 4 years ( Subtracts 1 week for remaining lock duration) | 1 month ( Subtracts 1 week for remaining lock duration) | 1 month |
| veNUSA owned | 3.98 veNUSA | 0.06 veNUSA | 0.21 veNUSA |
| Share portion | 94% | 1% | 5% |
| Reward received | $2,350 | $25 | $125 |
## Conclusion
Based on this example we can conclude that:
* The amount of veNUSA represents the portion of the reward received
* The amount of veNUSA is influenced by the amount of NUSA locked and lock duration
* The amount of veNUSA decreases as times
With this mechanism, choose your strategy that best with your needs with the resources and commitment you are willing to give. Don't forget to DYOR!
{% hint style="info" %}
This simulation is simplified to make easier examples. Real case calculation will have slight differences such as:
* The amount of reward each month will vary based on the platform revenue generated
* In this example, we simplified veNUSA decreasing number by day. In a real case, veNUSA decreasing number is calculated every second.
{% endhint %}
{% hint style="warning" %}
*Disclaimer: Crypto is a high-risk investment. Please do your own research and make sure you understand how to use the platform before taking further action.*
{% endhint %}
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