3Fi
Protocol Governance Token
Introduction
3Fi is the governance utility token of the 3 ecosystem. It is used by holders to participate in the protocol's governance processes.
Core Function: Governance Utility
Holding 3Fi enables participation in protocol governance. This utility is exercised through the VW3 mechanism, which converts staked 3Fi into non-transferable governance weight. This weight can be used in processes such as:
Influencing parameters for the Distribution Engine's allocation of assets.
Participating in votes on system parameters, such as asset whitelists.
Influencing the direction of certain treasury flows to protocol modules.
Distribution Model
3Fi has a fixed, maximum supply. Its distribution is linked to the issuance of GUILD units by the protocol.
Finite Supply: The total supply of 3Fi is capped. Its distribution is scheduled to conclude once the protocol has issued a predefined number of GUILD units.
Diminishing Issuance Rate: The rate at which 3Fi is issued per GUILD unit is programmed to decrease over time.
This model is designed to distribute governance utility over the protocol's development phase.
Utility for Holders
The utility of holding 3Fi is derived from its governance function and potential interaction with protocol mechanisms.
Governance Utility:
As the protocol's operations expand, participation in its governance processes represents a utility tied to the system's development.
Interaction with Protocol Operations:
Staking 3Fi to accrue VW3 weight aligns a holder with a specific protocol mechanism. A portion of ETH generated by the protocol's autonomous operations is distributed to stakers in proportion to their claimed VW3 weight. This distribution is a function of system performance and is not guaranteed.
This model ties the utility of the token to participation in the protocol's governance and long-term operational logic.
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