ve(3,3) Dynamics
The main stakeholders of a typical AMM (on the BNB chain), including veTHEholders, LPs, users, and protocols, are united by the ve(3,3) dynamic that determines the issuance.
veTHEholders are incentivized to vote for either the pools with the highest volume (because the higher the volume, the higher the amount of fees generated as a result) or for those where protocols have introduced voting incentives to increase their liquidity. This allows these protocols to create a positive feedback loop if a token generates high volume.
Liquidity providers (LP) - incentivized by emissions determined by metrics based on 'real yield'.
Traders - benefit from low slippage due to the provided liquidity combined with the latest and best battle-tested technology vAMM/sAMM.
Protocols - have access to a collaboration-focused liquidity layer. They benefit from capital-efficient trading conditions for their tokens and can incentivize their liquidity through rewards offered to veTHE holders.
Emission characteristics
Weekly emissions (at initial stage): 2,600,000 $THE
Weekly emission reduction: 1%
Weekly developer wallet distribution: 2.5% (reduced from 4%)
Weekly veTHE rebase: up to 30%
Emission for liquidity providers: 67.5% (1.5% added from development distribution)
Maximum supply based on weekly reduction of 1%: 310,000,000 $THE (adjusted from 315 million)
Development of total THE supply over time. Note: the circulating supply will be significantly lower.