Dolomite charges exit fees when veDOLO holders unlock DOLO early.
Dolomite lets DOLO holders recover tokens from a veDOLO lock before expiry by accepting burn and recoup deductions. The burn component follows a configurable rate, while the recoup component reflects the time remaining. Waiting until the recorded expiry removes both deductions under the standard fee calculator. Early withdrawal closes the selected lock and returns the remaining DOLO.
Locked principal, voting weight and withdrawable tokens measure different things. A falling vote balance does not mean that principal disappears. The choice between keeping a lock and closing it concerns both access to DOLO and the benefits that depend on voting weight.
DOLO principal and veDOLO voting power
A veDOLO lock holds DOLO principal and represents the position through a non-fungible token, or NFT. The underlying DOLO follows the ERC-20 token standard; the lock follows ERC-721. Owning the NFT identifies a particular locked position, including its deposited amount and expiry. Its governance weight reflects that amount and the remaining commitment. These distinctions explain why an NFT count, a voting balance and a token withdrawal amount can differ.
The locking system allows commitments of up to two years. For the same principal, a longer remaining lock produces greater voting weight. That weight supports participation in protocol governance, including decisions about tokenomics and asset listings. Early redemption relinquishes the selected lock’s continuing voting weight. Holding ordinary DOLO outside the escrow leaves those tokens outside this time-weighted arrangement.
Recorded expiry and declining vote weight
A lock’s stored end timestamp governs its maturity, and the contract rounds requested unlock times down to weekly boundaries. Voting weight declines as the remaining commitment shortens, reaching zero at expiry. The deposited principal does not shrink simply because time passes. A duration label therefore cannot replace the recorded timestamp when evaluating an exit. Principal answers how much DOLO backs the lock; remaining time helps determine its voting weight and early-exit charge.
What determines the DOLO received after an early unlock?
The returned DOLO equals the selected lock’s principal minus its burn amount and recoup amount. Both deductions use that principal as their calculation base. The calculator does not apply the second percentage to a balance already reduced by the first. A token-denominated deduction also differs from the network cost of executing the transaction.
Separate exit deductions
Burn amount
The burn amount follows the configured burn rate and the DOLO amount leaving escrow. Governance can modify the rate. A quoted percentage therefore needs its configuration context; it is not a permanent promise about every future withdrawal. Remaining time does not progressively reduce this component under the standard calculator.
Recoup amount
The standard fee calculator applies a 5% recoup rate during the final week before a lock expires. Above that final week, the rate increases linearly with remaining time, capped at 50% of principal. The fee approaches a floor before maturity, rather than declining continuously to zero.
The lock’s connected calculator supplies the applicable amounts when withdrawal executes. Its configuration matters because the escrow supports replacing that calculator. A preview describes a particular amount and time; execution uses the transaction’s block timestamp.
Does waiting until expiry eliminate the exit penalty?
At or after the lock’s end timestamp, that calculator returns zero for both early withdrawal fees. A nearly expired lock still incurs early-withdrawal fees when the transaction executes before its recorded end timestamp.
Fee-free maturity and maximum voting weight occur at different points in a lock’s life. The network transaction cost remains separate from the protocol’s token deductions.
NFT ownership and withdrawal restrictions
The withdrawal contract checks authority over the selected NFT and its attachment and voting-use state. An attachment marks a lock that the configured voter contract has placed in use. A nonzero attachment or active in-use voting flag blocks withdrawal. These are specific contract states; the restriction does not mean that every historical governance ballot prevents an exit.
The owner, an address approved for that NFT or an operator approved for all the owner’s NFTs can request withdrawal. NFT approvals concern control over the locked position, while a DOLO spending allowance concerns the fungible token. A matured date resolves the fee question while leaving the contract’s other checks intact. A rejected withdrawal leaves the escrow position unchanged by that transaction.
Should a veDOLO holder withdraw early or wait?
The choice turns on whether access to DOLO before expiry justifies the deductions that apply at execution. For an existing lock, compare the desired availability date with its recorded end timestamp. A withdrawal that executes shortly before expiry still incurs exit deductions.
- Identify the selected NFT, its locked DOLO amount and its recorded expiry.
- Confirm that the owning wallet controls the NFT and that its attachment and voting-use states permit withdrawal.
- Compare the returned fee amounts with the principal to establish the expected net DOLO.
- Choose early withdrawal or waiting based on the required access date.
- Allow for the network transaction cost separately from the DOLO exit deductions.
A submitted request alone does not establish receipt. Successful execution transfers the net DOLO to the calling wallet and closes the selected lock. The withdrawal record identifies that received amount, which differs from gross principal whenever exit deductions apply.
Burned tokens and recoup allocation
The burn deduction destroys the corresponding DOLO tokens, while the recoup deduction transfers DOLO to configured recipients.
The withdrawal implementation divides recouped DOLO between the configured vesting contract and buyback pool. A configurable split controls that allocation. The holder’s total recoup charge and the recipients’ division of that charge are separate quantities.
An oDOLO-to-DOLO trading-pool proposal sought to use accumulated early-unlock penalties as liquidity. That proposal failed its December 3, 2025 governance vote, and its proposed market was not implemented.
The rejected proposal concerned an oDOLO market, separate from redemption of an existing veDOLO escrow lock. The recoup split does not fix a reward-token conversion rate.
Governance influence and borrowing rebate eligibility
Governance weight connects the lock commitment to decisions about protocol risk parameters, treasury allocations and incentive programs. Asset-listing decisions can affect which assets qualify as collateral. Owning a lock does not guarantee that a proposal will pass.
Eligible borrow-fee rebates also depend on veDOLO voting weight, alongside interest paid on qualifying borrowing. The phased rebate rollout limits eligibility to Berachain borrowing. Holding or receiving delegated voting weight alone does not generate a rebate; the borrowing wallet must also pay eligible interest.
Weight decay changes rebate qualification even while principal remains untouched. Closing a lock removes its continuing contribution to voting weight, which can affect the borrowing wallet’s qualification. Rebate eligibility concerns borrowing costs, while the burn and recoup deductions concern the release of locked DOLO.
Governance procedures distinguish proposal discussion, voting and implementation. Each proposal has its own outcome, and implementation timing depends on its requirements. Before extending a lock for greater voting weight, compare its proposed later expiry with when you need unlocked DOLO.
What readers ask about Dolomite
Can I add DOLO to a veDOLO lock without extending it?
An active veDOLO lock supports adding DOLO without changing its recorded expiry. The amount-increase operation raises the deposited principal while retaining the existing end timestamp. The lock must contain a positive amount and remain unexpired. Additional principal changes the basis for voting weight and any later withdrawal deductions.
Is there a way to shorten an existing veDOLO unlock date?
The lock-duration function extends an existing commitment; it does not move its end timestamp earlier. Early withdrawal closes the selected lock and applies the relevant exit deductions. That operation differs from editing the duration while preserving the same locked position. Extensions require an active lock and must stay within the permitted maximum duration.
Does a veDOLO lock send DOLO to my wallet automatically at expiry?
Expiry makes the standard calculator’s exit deductions zero, but a withdrawal transaction still has to release the tokens. The recorded end time changes the fee treatment without initiating a wallet transfer. Until withdrawal executes successfully, the principal remains in escrow even though the matured lock has no remaining voting weight.
Which network hosts the veDOLO escrow and exit-fee calculator?
The veDOLO escrow and exit-fee calculator have a Berachain deployment. DOLO also has deployments on other networks, which does not establish that every deployment includes the same locking contracts. A wallet’s DOLO balance on another network and ownership of the Berachain lock NFT are separate states.
Do early-unlock fees guarantee income for other veDOLO holders?
Early-unlock deductions do not guarantee a distribution to other veDOLO holders. The burn destroys tokens and the recoup amount follows its configured allocation. Protocol fee sharing requires DAO activation under the token’s governance design.
How did the retroactive DOLO airdrop create veDOLO locks?
The standard retroactive usage allocation delivered half in transferable DOLO and half in a two-year veDOLO lock. Claiming the standard allocation created the veDOLO lock for the recipient. Some designated recipients could instead receive a full DOLO allocation. The standard split described the usage allocation, rather than every distribution category.
What separates the oDOLO purchase floor from a veDOLO exit fee?
The oDOLO purchase floor sets a minimum execution price when paired oDOLO purchases discounted veDOLO. An early-exit fee instead deducts DOLO when an existing lock closes before expiry. The floor applies after the lock-duration discount and can reduce or eliminate the effective discount. If DOLO trades below the floor, the execution price exceeds the market price. Acquisition costs and redemption deductions therefore apply to different operations.
Will delegating veDOLO move my locked DOLO to the delegate?
Delegation assigns voting weight while leaving the NFT and its locked DOLO with the owner. The delegation works at address level, so an owning wallet delegates the voting weight of all its lock NFTs together. That arrangement can support a separate borrowing wallet’s rebate qualification. It does not transfer escrow principal or change the locks’ recorded expiry dates.
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