# veDEM Mechanics

### <mark style="color:yellow;">**Flexible and Transferable Membership**</mark>

The veDEM membership adheres to the "veNFT" methodology, offering a unique, tokenized form of participation:

* Lockup and Tokenization: Upon locking up $DEM tokens, users receive an NFT that represents their membership and the duration of their token lockup, which directly impacts the locked $DEM value.
* Membership Flexibility: Members can choose to increase their locked position or reset their lockup period to adjust their level of commitment.
* Early Exit Options: Members can burn their membership NFTs to retrieve their locked tokens, subject to an early exit fee starting at 75% and decreasing linearly over the lockup period.
* Market Transferability: Membership NFTs can be freely transferred and may possess a variable market value, potentially ranging between the total locked value and the amount receivable upon early exit.

By integrating these mechanics, Demos ensures a vibrant community where token holders are not only stakeholders but also key players in driving the project forward.

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