> For the complete documentation index, see [llms.txt](https://docs.sherpa.trade/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.sherpa.trade/general/tokenomics/msherp.md).

# mSHERP

At the heart of the Sherpa trading protocol is the `mSHERP` lockup mechanism. With this, users stake `SHERP` for a predetermined amount of time, receiving in return the yield bearing `mSHERP`.

### Core Components <a href="#core-components" id="core-components"></a>

The `mSHERP` system takes its core components from the longstanding and sustainable `veCRV` and `vePENDLE` systems, with the following changes unique to Sherpa:

* `mSHERP` offers a volume multiplier
* `mSherp` holders receive numerous protocol specific benefits based on the amount of time locked and stake value committed, including
  1. Strategy creation rights
  2. Voting weight and fee intake percentages
* mSherp holding tiers are intentionally configured to incentivize large individual holders over sybils.

### Supply and Value <a href="#supply-and-value" id="supply-and-value"></a>

`mSHERP` is transferable but the protocol will not add, maintain, or incorporate any liquidity relating to `mSHERP` into its framework; only `SHERP` is liquid. Its value will therefore be directly determined by `SHERP`. The maximum possible supply of `mSHERP` is 20B tokens. This is exactly two times the total supply of `SHERP`. Although possible, there is a near zero chance this amount of mSHERP will even be minted based on the game theory regarding its [conversion factors](https://docs.sherpa.trade/docs/conversion-factors).

<figure><img src="/files/Dm3BGuQPtdiOxkHczIqn" alt=""><figcaption></figcaption></figure>