Andre Cronje has published a series of blog posts teasing the features of his upcoming ve(3,3) project on Fantom.
Cronje Details Incentive Structure
Cronje revealed last week that he is working on a new project and token for the Fantom blockchain. “I’m deploying a new experiment on Fantom this month,” Cronje wrote on Twitter on Jan. 1.
Though Cronje is a prominent team member of Fantom, the project seems to be independent of his official role there. Developer Daniele Sestagalli, the leader behind DeFi projects such as Wonderland and Abracadabra, is also involved in the project.
In a series of blog posts over the last week, Cronje dubbed the project “ve(3,3).” He described the project as featuring an “emission-based token [that balances] ecosystem participants.”
Users will be able to deposit a base token in return for a non-transferable token, which will be locked in the protocol. In return, they will receive transferable incentive tokens as a reward.
Emission rates—or the amount of newly created tokens—will be determined by the circulating supply, and rewards will be greater if fewer tokens are locked across the entire protocol.
When users lock their tokens, that “lock” will be represented by a non-fungible token, allowing users to circulate those locks.
Unlike some projects, ve(3,3) will incentivize fees rather than liquidity provision. This approach aims to create an optimized system: because those who lock funds receive 100% of the fees generated by the pools they vote for, pools will in turn be able to set high fees.
Project Will Also Feature AMM
In his final post, Cronje noted that there will be a new automated market maker (AMM) introduced as part of the protocol.
The project will support swaps between most types of assets. Trades will have a 0.01% fee, paid out in base assets.
Cronje noted that the AMM ecosystem is “saturated” and that, as such, this AMM was designed to take a protocol-to-protocol approach rather than serve as a competing AMM in its own right. Existing AMMs will be able to integrate the AMM, and the AMM will also have a Uniswap v2 compatible interface.
Each week, 2 million new tokens will be made available as incentives and distributed based on voting weights. However, because there will be no voting initially, the project plans to distribute tokens to the top 20 DeFi projects in order to begin the process.
Cronje also noted that the project will not have a DAO, which implies that the project will not be governed by votes from token holders.
Users will be able to add pools and liquidity permissionlessly. There will be “native support for adding third-party tokens and incentives.”
It is likely that Cronje will reveal more news in the future. He noted that his most recent post listed only “core features,” and that an in-depth explanation ” is reserved for a later article closer to launch.”
Fantom is currently the 30th largest blockchain on the market, with its FTM token boasting a market cap of $5.7 billion.