3Fi
The Governance Backbone of the Protocol
Introduction
3Fi is the finite governance token of the 3 ecosystem. It is the source of all protocol sovereignty, empowering its holders to direct capital flows, steer strategic development, and ultimately govern the autonomous financial system. While it does not receive direct fee revenue, its value is derived from its control over the protocol's treasury and its future.
Core Function: Governing the Sovereign System
Holding 3Fi is not a passive investment; it is an active role in stewardship. Its power is exercised through the VW3 mechanism, which translates staked 3Fi into governance weight. This weight is used to:
Direct Surplus Capital: Govern the allocation of ETH surplus to PODs via the Distribution Engine.
Manage Treasury Strategy: Vote on high-level parameters, such as adding new assets to the Holding Contract.
Control Operational Capital: Direct crvUSD from bond sales to specific Arbitrage Engines.
The Distribution Ark: A Finite Supply for a Growing Economy
3Fi has a fixed, maximum supply. Its distribution is intrinsically linked to the growth of the GUILD currency, ensuring governors are aligned with the ecosystem's expansion.
Finite Supply: The total supply of 3Fi is capped. 100% of this supply will be distributed by the time 33 billion GUILD have been issued by the protocol.
Diminishing Returns: The distribution rate is designed to favour early participants. The curve is steepest at the beginning, with 50% of the total 3Fi supply being distributed once just 3.3 billion GUILD (10% of the threshold) have been issued. The rate of distribution per GUILD then decreases over time, as shown in the graph below.
This model ensures that governance is widely distributed among early builders and users, securing a decentralised foundation for the protocol's long-term future.
Value Accrual
The value of 3Fi is accrued through two primary means: governance power and direct cash flow.
Sovereign Governance Power: As the protocol's treasury grows and its economic activity expands, the privilege and responsibility of directing its resources become more valuable. This makes 3Fi a claim on the protocol's future decision-making power and overall success.
Direct Revenue Share from Protocol Operations: 3Fi stakers are the ultimate beneficiaries of the ecosystem's core operational engine. A specific stream of ETH, generated and consolidated through the cyclical processes of the Holding Contract (distinct from the surplus ETH managed by the Distribution Engine), is distributed directly to 3Fi stakers. Your share of this revenue is calculated in proportion to your total claimed VW3 weight, not your raw 3Fi balance. This directly ties your financial reward to your provable, long-term commitment, ensuring the protocol's most aligned governors are also its primary economic beneficiaries.
This model ensures that those who are most committed to the long-term health of the ecosystem are both in control and economically rewarded for their stewardship.
Token details.
Name: 3Fi
Type: SafeERC-20.
Hard Cap: 3,333,333,333.
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