Dilution Protection
How ve(3,3) model mitigates dilution
$veBRONTO holders receive automatic rebases proportional to $BRONTO emissions and relative to the ratio of $veBRONTO to $BRONTO total supply. This elegant mechanism ensures that committed protocol supporters maintain their governance power and economic rights over time.
The Mathematics of Anti-Dilution
The weekly rebase amount is calculated with precision using the following formula:
This formula creates a dynamic anti-dilution system with powerful game theory implications:
- When locking rates decrease (lower $veBRONTO to $BRONTO ratio), rebases become more substantial
- This creates a counter-cyclical incentive mechanism that rewards new lockers when others are exiting
- Zero manual actions required—rebases happen automatically