Many DeFi protocols' token economics can be boiled down to "issuing candy": distributing profits, recruiting users, and supporting liquidity. As a result, after three months of hype, the token value returns to zero. Dolomite takes a completely different approach; it treats token economics as a system of order design, binding long-term participants with rules.
DOLO is the core of governance and rewards, but the key lies in the veDOLO model. The longer users lock their tokens, the greater their rights. In other words, those who are willing to accompany in the long term can gain greater influence and higher returns. This mechanism naturally suppresses short-term speculation and encourages the community to move towards long-term consensus.
In more detail, Dolomite has also designed a flexible token called oDOLO, allowing those who do not wish to lock their tokens long-term to participate in governance and profit distribution. This design effectively builds a bridge between "long-term commitment" and "short-term flexibility," enabling more users to find a suitable position. It does not force locking; rather, it guides choices through incentives.
The significance of this design is that Dolomite's token economics is not a tool for price manipulation, but rather the framework for the stable operation of the protocol. In the future, for DeFi to evolve from a "speculative market" to a "financial market," such a model that coexists with incentives and order is essential. Dolomite is charting a path different from most protocols, and this is its competitive moat.