# Governance Vault

### **What does the Governance Vault do?**

Stakers in the Governance Vault receive a share of all profits from the Value DeFi ecosystem. These include the income streams below:

#### **The Governance Vault has three income streams:**

1. The deposited idle VALUE can be used to farm other protocols, rewards get sold to buy more Value.
2. &#x20;14% of the profit from the [Value Vaults](https://valuedefi.gitbook.io/knowledgebase/products/value-vaults) are used to buy VALUE, this is shared over the Governance Vault stakers.
3. &#x20;The Governance Vault also gets 33% of the swap fees from [Value Liquid](https://valuedefi.gitbook.io/knowledgebase/products/value-liquid).

Additionally, if you stake in our Governance Vault you also have the opportunity to make important decisions in the project such as, what rewards to give, pools to set up, and percentage share of profits. Governance Votes can be seen by clicking the 'Vote' link on our homepage.

### How do I join the Governance Vault?

The Governance Vault is open to all users that **stake the** [**Value**](https://valuedefi.gitbook.io/knowledgebase/value-token) **token, in the Governance Vault**. Once staked you will receive Governance rewards and be able to vote in the governance votes. [See Governance Vault staking guide.](https://valuedefi.gitbook.io/knowledgebase/guides-1-1/governance-vault-staking-guide)

### &#x20;Governance Vault Rewards

The rewards from these income streams get added to your balance, which means they get autocompounded and results in saving gas costs for the user.  This can be seen in your gvValue Token balance.

![Staking at the Governance Vault](https://786371836-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MKniIsSfuG91ADIVpMi%2F-ML8_fwc5jvGRwpmiXwp%2F-ML8a9TfQxc6h3Hto5ZA%2Fimage.png?alt=media\&token=e26a3184-6e49-43db-8bc4-b4a43f55e198)

\
**What is gvValue?**

GvValue is the compounding interest token of the Governance Vault.\
When you deposit VALUE to the governance vault, gvVALUE will be generated and issued to you. \
When the vault redistributes a portion of the profit in VALUE (from Governance Vault, Value Vaults and Value Liquid fees) to the Governance Vault, the number of VALUE in the Governance Vault increases while the amount of gvVALUE remains unchanged.

At the start, with 0 VALUE 1gvVALUE : 1VALUE

On every harvest, more VALUE rewards are deposited (from buybacks/profitshare). Now there starts to be more VALUE in the Gov Vault compared to user deposited VALUE (gvVALUE), so the ratio for gvVALUE increases with respect to VALUE.

1gvVALUE : 1.5VALUE (eventually)

Regardless of users leaving the Gov Vault, those extra deposited rewards from harvests stay in there. Every harvest increases this ratio.

The later you leave getting into Gov Vault, the higher the ratio is from all the deposited rewards.

If at the time of depositing: 1gvVALUE : 1.1VALUE, then on a deposit of 1000 VALUE you will only receive 909 gvVALUE tokens.\
As such, gvVALUE can be exchanged for more VALUE. \
At time of writing, 1 gvValue = 1 gvVALUE = 1.011937028 VALUE.\\

![The Value Ecosystem](https://786371836-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MKniIsSfuG91ADIVpMi%2F-MKoW_isNfBUo07VKnjA%2F-MKozaNkYdktWkmFenwZ%2Fimage.png?alt=media\&token=a6fce5ac-88da-4cf9-a980-5bf90d88b2af)
