Using @SonicLabs as an example, let's talk about the transition from vetoken to ve(3,3). Actually, I discussed the ve33 mechanism and sonic ecosystem with Zhao a long time ago, but it was just in bits and pieces. Coincidentally, Binance Alpha has listed many tokens from the sonic ecosystem, so I took the opportunity to talk about the evolution of DeFi economic models from a historical perspective. 1. Vetoken aims to solve the supply and demand issues of governance tokens. During the DeFi summer, liquidity mining rewards helped many projects get started. As more people participated in mining, rewards decreased, and the "mine, withdraw, sell" approach couldn't alleviate the situation. Funds in the market began to seek higher rewards or rush to unmined opportunities, which is somewhat similar to the current meme. The Vetoken mechanism alleviates the "mine, withdraw, sell" problem by adjusting the supply and demand relationship of tokens, incentivizing users to participate in the long-term development of the protocol. This inevitably involves the $crv I have always held. On Curve, CRV tokens can be locked to mint veCRV, which can earn platform revenue, governance power, and boost LP rewards, thereby increasing user stickiness and even triggering the Curve War. In exchange for all these attributes, veCRV cannot be sold or transferred during the lock-up period. In short, after staking tokens, holders can earn benefits from protocol growth, while truly participating in governance to maximize their own interests, reducing supply and demand to stabilize prices for long-term development. So where is the problem? Early participants monopolize governance chips, and as the protocol grows, project parties buy many tokens to seize voting rights, leaving few tokens circulating outside, leading to manipulated token prices and triggering 51% attacks. Luna at the time only needed 200 million funds to trigger a 51% attack, causing billions of funds in the protocol to be wiped out. 2. Sonic's ve(3,3) promotes market synergy through a game mechanism. The ve(3,3) mechanism was first proposed by @AndreCronjeTech, who believes the reward mechanism of the protocol should balance the conflict between holders and LPs. In market behavior, providing liquidity, locking positions, and selling are involved, and through their game, market synergy is formed, promoting long-term project development. Perhaps short-term malicious actions (selling) yield maximum benefits, but in the long run, deep participation in the protocol can form a positive flywheel. $s rises - LP ARP rises - TVL rises - transaction fees rise - locked volume rises - circulation decreases, supply and demand imbalance - $s rises. 3. X33 is a more flexible ve33. Many people think $shadow's x33 is an upgraded version of ve33, but I don't think so. In @AndreCronjeTech's early vision, ve(3,3) had a grand vision, and different ve(3,3) protocols often make slight modifications to their mechanisms to reduce the mismatch between input time and market recognition, correcting the death spiral. Therefore, I believe $shadow's x33 is a more flexible ve33 and an attempt to realize AC's vision in line with this protocol. Stake $SHADOW, mint $xSHADOW. Here you can enjoy all the benefits brought by the traditional vetoken mentioned above, but traditional vetoken staking is locked until expiration, here you are given the chance to surrender half. $xSHADOW exits staking, allowing you to return protocol tokens at half price. For users, it allows you to exit liquidity, and for the protocol, it imposes a 50% voting rights penalty on users who choose to exit early, reducing token dilution and encouraging long-term holding. Stake $xSHADOW, mint $x33. I prefer to define x33 pricing as 0.5-1.0 of shadow. After xSHADOW undergoes liquidity staking, $x33 can be minted, with its core through automated voting and reward collection, while not interfering with xSHADOW's core mechanism, simultaneously obtaining the currency-based value of long-term staking. (Protocol income and voting incentive rewards will automatically yield, increasing the x33/shadow exchange ratio.) In summary: Stakers who stay longer in xSHADOW will earn more fees, voting incentives, user and emission exit rewards. $SHADOW doesn't need to be forcibly locked, binding you to me long-term, but for the protocol, the big rewards will flow to long-term holders.