<aside> <img src="/icons/info-alternate_gray.svg" alt="/icons/info-alternate_gray.svg" width="40px" /> Single Asset staking is an outdated governance tokenomics model that reduces a tokens liquidity, increases token volatility and slippage, Incentivises mercenary capital, and creates fragmented and expensive incentive programs. ve8020 combines the flexibility of asymmetric weighted pools with the efficiency of vote-escrowed mechanics to unlock the next evolution of DAO Governance tokenomics.
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Where does the current governance tokenomics structure fall short?
Single Asset staking is an outdated governance tokenomics model that reduces a tokens liquidity, increases token volatility/slippage, Incentivises mercenary capital, and creates fragmented and expensive incentive programs.
What is ve8020 and why is it a next-gen tokenomics model for DAO Governance? ve8020 combines the flexibility of asymmetric weighted pools, with the efficiency of vote-escrowed mechanics to unlock the next evolution of Governance tokenomics to unlock deep Liquidity, asymmetric asset exposure with minimised IL, and highly efficient incentive programs.
Where can I find more resources relating to Balancer Technologies unique PMF for governance tokenomics?
Due to incentivising single-staked positions and removing a majority of the token supply available for trading, all single-sided staked protocols run into a token liquidity problem. ve8020 will directly deepen your protocol’s native token via the integration of an 8020 pool token for governance.
Unlike a single staking model which requires DAOs to direct incentives at other positions to ensure liquidity is averrable for swaps, a ve8020 model ensures a SINGLE, concentrated source for protocols to direct incentives at. Combined with swap fees, core pools, and BAL liquidity flywheels, this unlocks an extremely efficient incentive program for protocols.
Ensure investors still have asymmetric exposure to your underlying native token while harnessing the many benefits of an 80/20 pool.
By utilising a ve8020 governance position, protocols enter a budding collective of DAOs known as the 8020 Initiative. This collective of notable protocols have helped amplify all new participants entering the ecosystem. Balancer will also provide comms, host twitter spaces, and create in-depth content in relation to your protocol / governance tokenomics.