Why Kura Uses x(3,3)
The ve(3,3) model combined token locking with anti-dilution rewards to encourage alignment and long-term commitment.
While influential, it faced key limitations:
Rigid Lockups : Up to 4 years, limiting participation and capital inflow.
No Exit Path : Disengaged users remained locked, resulting in 'dead' governance power.
Inflexible Voting : Static incentives and fixed locks often lead to poor governance dynamics.
Kura replaces this with x(3,3), a more dynamic system designed for permissionless, incentive-aligned participation.
Built for Flexibility & Alignment
Kura’s x(3,3) system preserves the core strengths of ve(3,3), voting power, anti-dilution, and emissions control, but fixes its biggest issues:
No Permanent Lockups
Users can exit at any time; no need to commit for years.
Exit on Your Terms
Leave immediately with a 50% penalty, or vest gradually over 15 to 180 days to minimize or avoid it.
This structure ensures:
Active users are rewarded, while passive or early exiters are penalized, redistributing value to long-term participants.
Users retain liquidity while still earning rewards and participating in governance, making the system more capital-efficient.
Governance remains dynamic, as voting power can be adjusted at any time, ensuring that no deadweight or stagnant influence persists.
Lock Duration
Up to 4 years
Optional (0–180 days)
Exit Flexibility
None
Vested or Immediate
Tradability
No
Yes (via k33)
Auto-Compounding
No
Yes
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