The term describes a peasant family with its land and other belongings granted by the Grand Duke of Lithuania to his loyal followers, usually as a reward for military service.
The nobles were also granted the right to decide court trials involving veldamai as the Grand Duke promised not to interfere.
The practice was initiated by Grand Dukes Jogaila and Skirgaila, but gained popularity under Vytautas the Great in early 15th century.
[5] Soldiers were no longer satisfied with sharing spoils of war and demanded land ownership, which would provide steady income during years of peace.
Vytautas put veldamai system into use when he centralized the state by replacing local princes with loyal governors, owning their fortune to the Grand Duke.