VW3

The Protocol's Measure of Commitment

Core Concept

VW3 (Voting Weight) is a non-transferable, soul-bound token that represents provable, long-term alignment with the 3 ecosystem. It is the definitive measure of governance power, designed to ensure that control over the protocol's future is earned through sustained commitment, not merely purchased.

How VW3 is Minted and Earned

VW3 has a fixed, protocol-level correlation with the 3Fi token but is earned over time.

  • Minting: Whenever 3Fi tokens are minted (e.g., through GuildSwaps), a corresponding amount of VW3 is also minted at a 4:1 ratio (4 VW3 for every 1 3Fi). This VW3 is held in a dedicated contract and is inaccessible.

  • Accrual: To access and use VW3, you must stake your 3Fi tokens. Staked 3Fi tokens accrue VW3 linearly over time, at a rate of 1 VW3 per 3Fi token per full calendar year, up to the maximum minted supply of 4 VW3 per 3Fi token.

  • The Commitment Barrier: This means a new staker has negligible immediate power. True governance influence is a function of both the amount and the duration of a staked position.

How VW3 is Used: Directing the Protocol's Resources

VW3 is the key that unlocks governance, but it is not used for one-off voting. It is staked to make persistent, strategic decisions. It can be unstaked and used to add weight elsewhere, but only one location at a time.

  • Staking VW3: Earned VW3 can be staked into two critical systems: (more systems will follow)

    1. Purpose-Oriented Distributors (PODs): To direct the flow of the protocol's ETH surplus to specific ecosystem functions (development, marketing, reserves, etc.).

    2. Arbitrage Engines: To direct the flow of crvUSD from bond sales to specific value-acquisition strategies.

  • Strategic Choice: VW3 cannot be staked in both places simultaneously. This forces governors to make a deliberate choice: direct "equity-like" ETH returns or direct "operational" stable-coin capital.

  • Persistent Influence: Once staked, VW3 provides continuous voting weight to its chosen destination until it is recalled, creating a stable and predictable governance landscape.

The Automatic Creditor Alignment

The VW3 system includes a vital mechanism to protect the protocol's core financial backers; its creditors.

VW3 tokens are minted alongside 3Fi but remain locked in a contract until claimed by 3Fi stakers. The Distribution Engine is programmed to recognise this unclaimed, dormant VW3. It counts this unclaimed balance and uses it to automatically boost the voting weight of the Creditors POD.

This design ensures that before governors have fully accrued their influence, and in times of low governance participation, the system's surplus reliably and automatically flows to the 3Bond holders who provide essential long-term liquidity. It is a built-in failsafe that priorities the protocol's financial backbone.

The Security Model: Commitment and Consequence

The system is designed to be anti-fragile and resistant to governance attacks.

  • Vesting of Power: A whale buying 3Fi today cannot sway governance tomorrow. Their voting power must vest over years, protecting the protocol from sudden, capital-based manipulation.

  • FIFO Unstaking: When unstaking 3Fi tokens, the system uses a First-In, First-Out (FIFO) model. This means the oldest (and most powerful) staked positions require the return of the maximum amount of VW3 first, protecting the long-term governance structure.

  • Soul-bound and Delegatable: VW3 is non-transferable to prevent vote-buying, but it can be delegated. This allows holders to assign their voting power to experts without risking their underlying 3Fi assets.

VW3 transforms governance from a simple popularity contest into a system where power is proportional to proven, long-term belief in the protocol's future.

Token details.

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