The Governance Vault is a key component to the broader Governor DAO token/revenue model. Token holders deposit their GDAO to the Governance Vault to receive xGDAO, a governance token that tracks to GDAO and increases in GDAO value through open market GDAO buybacks.

Every time a buyback takes place from on-chain revenue, a portion of that goes to buying back GDAO from the open market and delivering to xGDAO holders. This revenue share takes the form of an ever-increasing GDAO value held by xGDAO. Users can return their xGDAO back to the vault to receive their initial GDAO plus all revenue share that has taken place to date.



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