> For the complete documentation index, see [llms.txt](https://docs.skydrome.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.skydrome.finance/features/protocol-overview/understanding-the-ve-3-3-mechanics.md).
# Understanding the ve(3,3) Mechanics
Skydrome integrates the intricate ve(3,3) structure, which fuses two pivotal DeFi paradigms: The Vote-Escrow system, inspired by Curve, fosters prolonged token retention, while the Staking/Rebasing/Bonding concept, or the (3,3) game theory, traces its origins back to Olympus DAO.
Within Skydrome, the ve(3,3) framework functions as an incentivization module, rewarding endeavors that bolster the platform's stature, such as liquidity contribution and sustained token holding. Those supplying liquidity are rewarded with emissions, while veSKY proprietors benefit from protocol charges, inducements, rebases, and a voice in governance. This avant-garde strategy paves the way for a vibrant, participant-centric ecosystem.
Explanation of the roles of the various stakeholders
***Key Features of Ve(3,3)***
**Adaptive Emission Rate**
Skydrome's token distribution pace is not rigid; it's designed for weekly recalibrations, determined by the rate of circulating supply. A guaranteed decrement of at least 1% from the previous week's emissions ensures a deliberate and enduring token distribution trajectory.
**Empowering Token Affiliates**
Distinctively, Skydrome's ve(3,3) mechanism accentuates fee rewards, rather than an exclusive emphasis on liquidity supply. This innovative design harmonizes the aspirations of both token stakeholders and liquidity contributors. When participants commit their assets, they stand to gain the entirety of fees generated by their endorsed pools. Such a model grants pools the leeway to propose elevated fees, thereby fostering a resilient and profit-centric sharing blueprint for the entire community.
**Token Locks Transition to NFTs**
Within Skydrome, the act of locking tokens is more than a mere commitment; it's a tradable asset. This token lock is transformed into a tokenized form, allowing a single entity to maintain various lock positions. The cumulative balances of these positions factor into the overarching veSKY balance. This characteristic paves the way for locks to be traded in secondary marketplaces and even be leveraged as collateral in prospective lending arenas.
By transmuting these locks into Non-Fungible Tokens (NFTs), Skydrome addresses the potential inefficiencies of locked capital. This transition assuages apprehensions about looming liquidity demands. In essence, Skydrome's "NFTization" of veSKY offers an elegant response to the liquidity conundrum inherent to voting escrow tokens.
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