# v1 -> v2

## Tokenomics Changes for ABRA

The ABRA tokenomics will become emission-based. This section describes changes for key components during the transition to the new tokenomics.

## Strategies

All funds in version 1.0 strategies will be available for withdrawal. Deposits and reward claims will be stopped.  Yield earned after v2 launch will become unavailable for withdrawal.

## ABRA Token

The contract address remains unchanged, and all ABRA tokens previously issued and held by users remain in circulation.

### Burning ABRA

ABRA tokens owned by the protocol (in vesting pools and liquidity pools) will be burned during the transition to the new model. The remaining USDT in Protocol Owned Liquidity (POL) will remain at the same volume and price ranges as one-sided positions, continuing to support ABRA liquidity. If ABRA reappears in POL positions due to a price decrease, those tokens will also be burned.

This approach ensures two key points:

* **Liquidity in USDT**, supporting the current ABRA price, was created solely from ABRA purchases and remains unchanged at the same price levels.
* **All ABRA tokens** that are or will be part of the current POL positions represent unrealized supply and are subject to burning.

After transitioning to the new tokenomics, ABRA liquidity will be supported by users, and the POL concept will no longer apply.

## veABRA&#x20;

Holders of veABRA version 1.0 will be given 2 options: to migrate to a new lock or unlock their ABRA tokens minus previously received rebate bonuses.

#### **Migration** veABRA **to the New Protocol Version**

Migration to the new version preserves the amount of locked ABRA and the quantity of veABRA, with the option to retain or extend the lock period. veABRA with expired lock periods can also be migrated.&#x20;

{% hint style="info" %}
If the remaining lock period is less than 30 days, it will be reset to a minimum of 30 days upon migration. veABRA with expired lock periods wll be extended to 30 days.&#x20;
{% endhint %}

#### Unlocking veABRA for USDT

If users choose to unlock veABRA instead of maintaining the lock, the resulting ABRA tokens are converted into USDT at the current market price selling in Uniswap pools. However, previously received bonuses as rebates are deducted from the original ABRA amount in the lockup. This means that users receive the principal amount of the lockup without all the yield earned during the initial Cadabra protocol version lock period.

{% hint style="info" %}
The unlock option will only be available during the two weeks after its announcements and will be finished before the release of Cadabra v2.0
{% endhint %}
