Ethereum's TVL on Linea platform surpasses $120 million utilizing the (3,3) mechanism
In the ever-evolving world of Decentralized Finance (DeFi), a game-theoretic incentive mechanism known as the (3,3) tokenomics model has been making waves. This model, designed to encourage collective staking by participants for mutual benefit, has been implemented in various social-fi dApps, such as Friend Tech and Etherex.
Friend Tech, a social-fi dApp, rose to prominence by using the (3,3) game mechanics. Users bought each other's keys with the promise of reciprocation, leading to a manipulative cycle that resulted in price pumping. Unfortunately, this practice led to significant losses for smaller users, who often bought their own keys, agreeing to (3,3) with others who would subsequently manipulate the price and sell their shares, fleecing their counterparties. As a result, Friend Tech's FRIEND token plummeted from $3 to $0.1 in just two months after its controversial launch, where 100% of the tokens were emitted on the opening day.
On a more positive note, Etherex, a decentralized exchange (DEX), has seen significant growth. The xREX staking mechanism on Etherex offers an impressive Annual Percentage Rate (APR) of 84.35%. This staking mechanism, which is part of Etherex's (3,3) tokenomics, has contributed to Etherex surpassing $120 million in total-value locked (TVL) recently. The token release caused a significant increase in Etherex's TVL, which is now at $123 million.
The REX token, another addition to Etherex, was released five days ago. It currently has a fully diluted valuation of $155 million. However, it's important to note that users who wish to instantly exit with their xREX stake and earnings incur a 50% penalty. The other 50% of the penalty is redistributed to other stakers on Etherex.
The (3,3) model itself is not inherently flawed but requires robust governance and transparency to prevent exploitative behavior. Unfortunately, the model's history is marked by controversy, as seen in the Meteora DEX on Solana, where allegations of market manipulation and exploitation of early token mint access led to over $200 million being allegedly extracted from various memecoin projects associated with the M3M3 platform in 2025.
The Meteora incident highlights risks when tokenomics frameworks intersect with centralized actors or insufficient oversight. It's crucial for platforms employing the (3,3) tokenomics to maintain transparency and robust governance to ensure fair and ethical practices.
In the case of Friend Tech, the controversy surrounding its launch and the manipulative use of the (3,3) mechanism have led to a significant drop in the value of its FRIEND token, which now trades at a $4 million valuation, a 99% drop from its $233 million opening price.
Meanwhile, Olympus DAO, another platform that popularized the (3,3) model, faced similar accusations of being a Ponzi scheme. However, Olympus DAO has since modified its protocol and trades at a $370 million market capitalization, down 91% from its all-time high of $4.2 billion.
In conclusion, the (3,3) tokenomics model plays a significant role in incentivizing cooperative staking behavior in DeFi. However, it's essential for platforms employing this model to maintain transparency and robust governance to prevent exploitative behavior and ensure fair practices for all users. The controversies surrounding Friend Tech and Meteora serve as cautionary tales in this regard.
Recently, Linea, another DeFi platform, unveiled a series of announcements less than two weeks ago, allocating 75% of the tokens to ecosystem development and 10% for a user airdrop, indicating a commitment to transparency and fair practices. It will be interesting to see how these new platforms navigate the use of the (3,3) tokenomics model and whether they can avoid the pitfalls that have plagued platforms like Friend Tech and Meteora.
Investing in technology-driven platforms like Etherex, which employs the (3,3) tokenomics model, can offer attractive returns, as demonstrated by the impressive Annual Percentage Rate (APR) of 84.35% from the xREX staking mechanism. On the other hand, failure to ensure transparency and robust governance in the implementation of this model, as experienced by Friend Tech, can lead to significant financial losses for users. Therefore, platforms using the (3,3) tokenomics must maintain transparency and robust governance to prevent exploitative behavior and promote fair practices for all investors.
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