VW3
Non-Transferable Governance Weight
Core Concept
VW3 (Voting Weight) is a non-transferable metric that represents participation in the 3 protocol's governance. It is designed to measure long-term engagement with the system.
How VW3 is Generated and Accrued
VW3 has a fixed relationship to the 3Fi token but is accrued over time.
Generation: When 3Fi tokens are minted, a corresponding amount of VW3 is generated at a 4:1 ratio. This VW3 is held in a contract.
Accrual: To accrue VW3, a participant must stake 3Fi tokens. Staked 3Fi accrues VW3 linearly over time, at a rate of 1 VW3 per 3Fi token per year, up to the maximum of 4 VW3 per 3Fi token.
How VW3 is Used: Influencing Protocol Parameters
Accrued VW3 can be staked to influence specific protocol parameters. It can be staked in one location at a time.
Staking VW3: VW3 can be staked into systems such as:
Purpose-Oriented Distributors (PODs): To influence parameters for the allocation of assets.
Arbitrage Engines: To influence the direction of certain treasury flows.
Persistent Parameter Setting: Once staked, VW3 provides continuous influence on its chosen parameter until it is withdrawn.
Automatic Parameter Adjustment
The VW3 system includes a programmed logic: VW3 that has been generated but not yet claimed by stakers is accounted for by the Distribution Engine. This logic is used to algorithmically adjust the allocation parameters for a specific POD.
This design influences internal asset flows during early or low-participation phases.
System Design Parameters
The system includes design parameters for security and engagement:
Time-Based Accrual: Influence accrues over time, not immediately.
FIFO Unstaking: When unstaking 3Fi, the system uses a First-In, First-Out model for returning VW3.
Delegation: VW3 influence can be delegated to another address without transferring the underlying 3Fi.
VW3 is a mechanism for measuring and applying governance participation within the protocol.
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