Blackhole introduces an innovative vote-escrow (ve) tokenomics model to incentivize liquidity provision and governance participation. Central to this model are two distinct vote-escrow Non-Fungible Tokens (veNFTs): Singularity Lock and Supermassive Lock. These veNFTs are minted by locking $BLACK tokens, the protocol’s native token, and grant holders voting power and a share of protocol revenue. This document explains the mechanics of both veNFTs, compares their features, and highlights the unique benefits of the Supermassive veNFT

The Singularity veNFT allows users to lock $BLACK tokens for a flexible duration, ranging from one week to four years, following a model inspired by Curve Finance’s proven vote-escrow mechanism. The amount of voting power, represented as veBLACK, is determined by both the number of $BLACK tokens locked and the lock duration. The relationship is linear: the longer the lock period, the higher the veBLACK voting power. For example:

• 100 $BLACK locked for 4 years yields 100 veBLACK.

• 100 $BLACK locked for 1 year yields 25 veBLACK.

This mechanism rewards longer commitments with greater voting influence and a larger share of the protocol’s trading fees and voter incentives. The Singularity veNFT is ideal for users seeking flexibility, as it accommodates shorter lock periods. It suits participants who want to engage in governance and earn rewards without a permanent commitment.

The Supermassive veNFT introduces a new feature: permanent token locking by sending $BLACK tokens to a burn address, effectively removing them from the circulating supply forever. This perma-locking mechanism is a key differentiator from other vote-escrow protocols, including the Singularity model. Only Supermassive veNFTs are issued to the Blackhole team for their token allocations, ensuring their incentives are fully aligned with the protocol’s long-term success by eliminating the possibility of team token selling pressure.

Supermassive veNFTs offer non-decaying voting power, unlike Singularity veNFTs, which may require re-locking to maintain influence. This permanence translates to a stable, ongoing claim on protocol revenue, including trading fees and voter incentives. Additionally, Supermassive veNFT holders receive a 10% boost in veBLACK voting power and as such a 10% bonus on their rebase rewards, which are proportional to protocol token emissions and the ratio of locked to circulating supply. This boost significantly enhances returns for long-term stakeholders.

The Supermassive veNFT stands out as the superior choice for users and stakeholders committed to Blackhole’s long-term success. Its benefits include:

1. Permanent Voting Power: Unlike Singularity veNFTs, which require re-locking to maintain influence, Supermassive veNFTs provide non-decaying voting power. This ensures holders retain consistent influence over governance decisions, such as directing $BLACK emissions to liquidity pools, without the need for ongoing management.

2. Enhanced Rewards: The 10% boost on rebase rewards significantly increases returns for Supermassive veNFT holders. These rewards, tied to protocol emissions and the locked-to-circulating supply ratio, make Supermassive veNFTs more lucrative, especially as the protocol grows and emissions distribute value to veNFT holders.

3. Deflationary Impact: By permanently burning $BLACK tokens, Supermassive veNFTs reduce the circulating supply, potentially increasing token scarcity and value over time. This deflationary mechanism aligns with Blackhole’s goal of long-term price stability and contrasts with Singularity veNFTs, which locked tokens remain part of the total supply and may return tokens to circulating supply after the vesting period ended.

4. Alignment with Protocol Goals: The Blackhole team exclusively receives Supermassive veNFTs, ensuring their tokens are permanently locked and burned. This eliminates sell pressure from team tokens, a common issue in other protocols where founders must re-lock tokens every four years. Supermassive veNFT holders, including the team, are fully aligned with the protocol’s long-term success, fostering trust and stability.

5. Unique Market Positioning: The Supermassive veNFT sets Blackhole apart from other ve(3,3) protocols by introducing a permanent locking mechanism. This innovation enhances the protocol’s appeal to projects and communities seeking sustainable liquidity solutions and governance models that prioritize long-term commitment.

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