📐Protocol Design

ve(3,3) Tokenomics Model

The ve(3,3) tokenomics model enhances governance by locking tokens to provide voting power and rewards. The name is derived from "vote-escrowed" and cooperative game theory principles (3,3), which incentivize participation and aligns stakeholders incentives with the long-term success of the protocol.

How It Works

Blackhole is pioneering an improved ve(3,3) model that consists of a dual veNFT mechanism.

Singularity veNFT

Users can choose to lock $BLACK governance tokens for a period ranging from 1 week up to 4 years to mint veNFTs. These veNFTs grant voting power, allowing holders to direct emissions to specific liquidity pools by voting for associated gauges weekly.

Projects can bribe veNFT holders to vote for their gauges, with limits set as a percentage of their LP's value. This increases the appeal of certain gauges and ensures efficient emissions allocation. veNFT holders can earn revenue in the form of swap fees of the pools voted on and liquidity incentives from the pools voted on.

Supermassive veNFT

The Supermassive veNFT stands out as a unique veNFT, that can only be minted if users choose to permanently lock $BLACK tokens. These in fact are removed from circulation by sending them to a burn address.

This significant commitment is rewarded with exclusive benefits for Supermassive veNFT holders:

• non-decaying voting power

• 10% additional voting power boost

• 10% boost on the rebase rate

While community members are free to select which type of veNFT to mint, the team has decided to burn all team tokens to mint Supermassive veNFTs. As a result, there will never be any sell pressure from future team token unlocks, since the team holds no team tokens. This approach demonstrates the team’s full commitment to the protocol’s long-term success.

Unlike other ve(3,3) projects where the community must trust that the team will continually re-lock their tokens every four years, Blackhole distinguishes itself with a transparent, on-chain approach guided by the credo: “don’t trust but verify on-chain.”

Rewards

LP providers receive emissions each epoch. veNFT holders receive protocol revenue and bribes from the previous epoch, proportional to their LP stakes.

Benefits

This model creates a sustainable ecosystem for gaming projects and investors by aligning incentives and fostering collaboration. Benefits include:

• Multiple reward streams for veNFT holders (protocol fees and bribes)

• Efficient allocation of emission rewards to the most valuable liquidity pools

• Reduced circulating supply of governance tokens