🔒Locks
Blackhole uses two tokens to manage its utility and governance:
$BLACK — ERC-20 utility token of the protocol
$veBLACK — ERC-721 governance token in the form of an NFT (non-fungible token)
Liquidity providers earn $BLACK tokens through emissions.
$veBLACK is used for governance. Any $BLACK holder can vote-escrow their tokens and receive a a Lock or veNFT in exchange. Additional tokens can be added to the veBLACK NFT at any time.
Blackhole sets itself apart from other vote-escrow protocols by making key improvements to the vote-escrowed model, specifically through the introduction of two distinct veNFTs:
Singularity veNFT
You can mint this veNFT by locking protocol tokens ranging from a week up to four years, mirroring Curve’s proven vote-escrow mechanism.
The lock period (also known as vote-escrowed period, hence the ve prefix) can be up to 4 years, following the linear relationship shown below:
100 $BLACK locked for 4 years will become 100 veBLACK
100 $BLACK locked for 1 year will become 25 veBLACK
The longer the duration, the higher the voting power (voting weight) of the underlying locked balance. When you lock $BLACK tokens, you receive a veNFT , which represent your voting power and claim on protocol revenue.
The veBLACK amount is calculated based on both the number of tokens and the length of the lock. For example, locking 100 tokens for 4 years may grant you 100 veBLACK, while locking the same 100 tokens for 1 year might only give you 25 veBLACK
This means that, with the same token amount, a longer lock duration always results in more veBLACK voting power and thus a larger share of the protocol's revenue.
To further illustrate this, below are 4 locks, each with the same amount of 1000 BLACK tokens locked, but for different durations: 1 year, 2 years, 3 years and 4 years:
Each has the same Rebase APR % but with different amounts of veBLACK voting power as the longer you lock, the more veBLACK your lock gets and the larger share of the protocol's revenue you earn as its proportionate to your veBLACK voting power.
Locks can be set into Auto-Max Lock, which are treated by the protocol as being locked for the maximum duration of 4 years, and their voting power does not decay. TheAuto-Max Lock feature can be turned on and off for each lock in the EXTEND option:
Supermassive veNFT
Supermassives can only be minted by perma-locking tokens. These are effectively burned by sending them to a burn address, removing them from the supply forever.
Benefits of the Supermassive veNFT
The Supermassive veNFT stands out as the superior choice for users and stakeholders committed to Blackhole’s long-term success. Its benefits include:
Permanent Voting Power: Unlike Singularity veNFTs, which require re-locking to maintain influence, Supermassive veNFTs provide non-decaying voting power. This ensures holders retain consistent influence over governance decisions
Enhanced Rewards: The 10% boost on rebase rewards significantly increases returns for Supermassive veNFT holders. These rewards, tied to protocol emissions and the locked-to-circulating supply ratio, make Supermassive veNFTs more lucrative, especially as the protocol grows and emissions distribute value to veNFT holders.
Deflationary Impact: By permanently burning $BLACK tokens, Supermassive veNFTs reduce the circulating supply, increasing token scarcity and value over time. This deflationary mechanism aligns with Blackhole’s goal of long-term price stability and contrasts with Singularity veNFTs, which return tokens to circulation.
Alignment with Protocol Goals: The Blackhole team exclusively receives Supermassive veNFTs, ensuring their tokens are permanently locked and burned. This eliminates sell pressure from team tokens, a common issue in other protocols where founders must re-lock tokens every four years. Supermassive veNFT holders, including the team, are fully aligned with the protocol’s long-term success, fostering trust and stability.
Unique Market Positioning: The Supermassive veNFT sets Blackhole apart from other ve(3,3) protocols by introducing a burning mechanism. This enhances the protocol’s appeal to projects and communities seeking sustainable liquidity solutions and governance models that prioritize long-term commitment.
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