ve(3,3)
Definition
ve(3,3) is a tokenomics model combining Curve's vote-escrow (ve) mechanism with OlympusDAO's (3,3) game theory. Pioneered by Andre Cronje's Solidly and refined by Velodrome, it aligns incentives by letting veToken holders vote on gauge emissions and earn fees from the pools they vote for. The (3,3) element encourages cooperative behavior — everyone benefits most when participants lock tokens rather than sell.
Example
Velodrome on Optimism uses ve(3,3): VELO holders lock tokens as veVELO, vote on gauges to direct emissions, and earn 100% of trading fees from pools they vote for.
Risks to Consider
- Ponzinomics criticism
- Emission sustainability
- Governance capture
Common Questions
Is ve(3,3) sustainable long-term?
The sustainability depends on the protocol generating real trading fees that justify emissions. Velodrome has shown the model can work when the DEX achieves sufficient volume, but many Solidly forks failed due to insufficient organic demand.
