> For the complete documentation index, see [llms.txt](https://docs.pacaswap.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.pacaswap.com/pacaswap-dex/governance.md).
# Governance
Every month, Pacaswap holds a voting round that determines how the DEX's emission rewards are allocated across liquidity pools and node operators. This community-driven approach ensures that users with voting power (obtained by locking SWAP tokens) directly influence which pools receive the most rewards for that round.
Governance
### How It Works
1. **Lock SWAP to Gain Voting Power**
* Users lock their SWAP tokens for a chosen duration (e.g., 6 months, 1 year, or 2 years).
* The longer the lock duration, the greater the voting power received.
2. **Allocate Votes**
* Once you have voting power, you can distribute it across available liquidity pools and a node operator option.
* You can spread your votes among multiple pools or allocate them all to a single option—it’s entirely up to you and your strategy.
Casting a vote
3. **Snapshot & Emission Allocation**
* At the end of each monthly round, the total voting power allocated to each pool and the node operator option is captured.
* The SWAP emissions designated for the community (75% of the monthly incentives) are then distributed proportionally based on the voting power each option receives.
* Liquidity providers in each pool receive rewards in proportion to their share of that pool’s liquidity, while node operators earn rewards based on the allocation to the node operator option.
4. **Governance Incentives**
* An additional governance incentive (from the fixed 20,000,000 SWAP allocated annually) is also distributed.
* These rewards go to participants based on their allocated voting power at the end of the voting round. Essentially, users who lock SWAP and actively vote, receive governance rewards in proportion to their share of the total allocated voting power.
5. **Ongoing Participation**
* Your voting allocations will **not** automatically carry over to the next month as such every month, users need to participate in the voting round and allocate their voting power.
* If you wish to adjust your votes, you can rebalance them at any point before the end of the monthly round so that those changes apply in the next month.
### Why Monthly Voting Matters
* **Community-Driven Incentives**: By assigning votes, you actively shape which pools or Node Operators receive the bulk of SWAP rewards steering liquidity growth toward the areas you believe are most beneficial.
* **Sustainable Ecosystem**: Regular voting encourages continuous engagement from token holders, ensuring decisions adapt to market changes and community sentiment.
* **Reward Alignment**: Voters are incentivized through governance rewards, motivating consistent participation and alignment with the long-term health of PACA Swap.
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