Before November 26, $THE's performance was unremarkable, with daily trading volume below one million dollars, hardly attracting much attention. However, on November 26, this situation was instantly broken, with trading volume skyrocketing to 50 million dollars, and the next day it soared to 2 billion dollars. This explosive growth not only attracted market attention but also made people begin to reassess the potential of this project.
$THE's sudden popularity actually has its reasons. Compared to traditional models, its ve33 model has made a thorough innovation in profit distribution—allowing token holders to truly enjoy ecological benefits. This change seems simple, but it solves the long-standing token value capture problem that many projects face.
The market has clearly reacted positively to this, with funds and attention pouring in, making this project the focus. This phenomenon leads one to ponder that perhaps $THE is not a fleeting moment but is exploring a new path. Can its model inspire more similar projects to follow? Will it continue to receive attention like it does now in the future? Everything is just beginning, but the starting point for $THE is clearly bright enough.
Innovation of the ve33 Model
$THE is based on the ve33 model (also known as Flywheel 33). Unlike traditional dex, it gives all dex earnings to ve33 locked holders, allowing tokens to truly gain returns.
Reward Innovation: When providing tokens to THE for LP, the reward is directly THE tokens, avoiding uncompensated losses. The APY of LP is determined by the votes of the lock-up holders, reflecting community governance and profit sharing, and is also an important mechanism for absorbing secondary THE.
Voting Game: Voting is conducted weekly to determine the emission amount for the next week. Project parties often compete to increase their project's LP emissions through added bribes. Voter earnings include inflation emission amounts, transaction fees, and bribes from project parties.
In the early stages, THE's weekly voting earnings were around 300,000 US dollars, with cumulative earnings approaching 20 million US dollars. With the increasing activity in BNB Chain transactions, future on-chain earnings will reach astonishing levels. THE's staking earnings will become exceptionally high, attracting further rises in THE, which in turn draws more market liquidity into BNB Chain.
Locked Ecosystem Stability
Bull Market Earnings Surge: Currently, the average lock-up amount for stakers is 1.78 years, with the longest being two years, and the lock-up ratio is close to 80%, showcasing investor confidence while also reflecting the high yield of staking in a bull market.
Bear Market Bottom Line: When trading volume is frozen in a bear market, the expected lock-up annual yield is still at least 35-40%. After appropriate hedging, it can still attract large funds to enter for value preservation and appreciation.
Ve33 Success Cases and $THE Potential
Aero has already set a benchmark: Aero on the base chain is a successful case of ve33, with weekly earnings of $8 million and a circulating market value of about $800 million. In contrast, the circulating market value of THE is much lower. Last week, with earnings exceeding $400,000 before Binance Chain has exploded, it can support a surge of more than 10 times, about $2 billion in FDV. If Binance Chain has more excellent projects like $Koma, the community can break through barriers and collaboratively bring massive on-chain traffic. Once Binance Chain explodes again, THE's market value could exceed Cake's peak FDV of about $18 billion.
The Flywheel effect is about to launch: With the backing of top coins, unlike traditional on-chain Dex mechanisms, the ve33 model will have a strong adhesion to on-chain liquidity, reshaping the trading ecosystem, where the strong get stronger, and in the future, THE may occupy more than 80% of on-chain TVL and trading volume!
Headquarters Strategic Considerations
Long-term Layout: The top-listed $THE is based on strategic planning, and the vampire effect of the Flywheel triad model can be reconstructed, making it part of the Binance Chain ecosystem. Unlike UNI and Cake, THE's LP earnings are given to THE, incentivizing LP to lock up and vote, forming a virtuous cycle that promotes the operation of the Flywheel. Its tri-party game mechanism diversifies value anchoring, the voting process is highly competitive, increasing ecological variables and gameplay.
Win-Win for All: The ecosystem's multi-party game reduces the likelihood of project parties engaging in malfeasance. Project parties need to purchase THE to lock up and vote, establishing a bottom pool, binding their interests with those of the project, and will not easily sell off. When the Flywheel effect is fully realized, ve33 tokens will be similar to base currencies, and active Binance Chain transactions will continue to benefit holders.
Evolution of the ve33 Model and the Birth of $THE
Limitations of the First Generation: The ve33 model originates from equal created on the FTM chain, with a lock-up period of up to six months, resulting in insufficient user stickiness, with the ecosystem primarily focused on PVP, making it difficult for the Flywheel effect to take effect and leading to poor ecological vitality and stability.
Second Generation Issue: The v33 protocol Velo on the OP chain is influenced by Equal, attracting a large number of 'iron rooster' big shots to enter the market, while many retail investors are locked for 4 years. The project team lacks motivation, and the big shots control the ecosystem. Additionally, the current bull market of Layer 2 is affected by Ethereum's downturn, leading to an overall lack of sufficient wealth effect and activity on-chain, impacting overall efficiency.
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THE summarizes the lessons learned from the first two generations, optimizing and innovating the ve33 model, aiming to create a fair, efficient, and sustainable ecosystem, injecting momentum into the reshaping of the BNB ecosystem. At the same time, Binance Chain has recently shown explosive potential under CZ's return, and future development is worth looking forward to, with the potential to become the core force of BNB ecosystem explosion.
