🔒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

Users 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 proportionate share of the protocol's revenue you earn as its proportionate to your veBLACK voting power.

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.

Locks (veNFTs) 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 (veNFT).