$CARROT is an ERC-20 token designed to replace the off-chain Puffer Points during Season 2. Users can earn $CARROT through staking, providing liquidity, and participating in governance via gauge voting. After Season 2 concludes, $CARROT tokens will convert to $PUFFER tokens at a predetermined rate. The total supply of $CARROT is capped at 100 million tokens, with emissions adjusted bi-weekly based on community-governed gauges. The distribution of rewards is proportional to the support each gauge receives from the community. The rewards distribution mechanism for $CARROT tokens is driven by community governance and gauge voting. Holders of vePUFFER tokens can engage in bi-weekly voting to allocate their voting power to specific gauges, which can include liquidity pools and protocol integrations. Following the voting period, a reward epoch commences, allowing vePUFFER holders, pufETH holders, and liquidity providers to claim their $CARROT rewards, which come with a 30-day vesting cliff. Rewards can be claimed at any time during the reward epoch or within one year after the conclusion of Season 2. However, once claimed, there is a 30-day lock period before users can withdraw their tokens, and each claim resets this lock period. Overall, $CARROT serves as a vital component of the ecosystem, incentivizing community participation and governance while facilitating the transition to $PUFFER tokens post-Season 2.