Question 1

What is DOLO?

Accepted Answer

DOLO is the ERC-20 governance token of the Dolomite protocol and the base asset for entering its locked governance system. Standard DOLO is transferable and can be used in protocol scenarios such as liquidity provision and lending; after locking DOLO, users receive veDOLO rather than continuing to participate in governance directly with standard DOLO. Therefore, DOLO, veDOLO, and oDOLO are not the same asset: DOLO is the transferable base token, veDOLO is the locked position used for governance and incentives, and oDOLO is a separate incentive token for liquidity providers.

Question 2

On which networks is DOLO issued, and how is double counting avoided across chains?

Accepted Answer

DOLO's token generation event (TGE) took place on April 24, 2025, on Berachain and Ethereum. Official documentation states that DOLO is deployed as an ERC-20 on Berachain, Ethereum, and Arbitrum; this describes deployment of the same asset across multiple supported networks, rather than three separate tokens. Cross-chain transfers use a mint-and-burn model and Chainlink CCIP. Tokens on the originating network are burned during the cross-chain process, and a corresponding amount is minted on the destination network, so cross-chain circulation is not simply treated as a duplicate increase in supply; the actually available networks and transfer routes remain subject to the official application and published contracts.

Question 3

How can DOLO be converted to veDOLO, and what happens upon early exit?

Accepted Answer

To obtain veDOLO, users need to lock DOLO for up to 2 years. The longer the remaining lock duration, the higher the voting weight, so veDOLO ties governance influence to the time remaining in the lock. veDOLO is implemented as an NFT, can be transferred, and its lock positions can be merged or split. Exiting before maturity requires an exit fee: this includes a fixed 5% burn fee (modifiable by governance), as well as a recoup fee that declines with the remaining lock period; for a two-year lock, this fee starts at 50% and decreases linearly to 0% at maturity.

Question 4

How do veDOLO holders participate in governance, and how are approved proposals implemented?

Accepted Answer

veDOLO holders can participate in proposals concerning asset listings or delistings, tokenomics adjustments, risk parameters, treasury allocations, and incentive programs. Obtaining veDOLO by locking does not mean every holder has equal authority: authority and voting weight depend on that holder's veDOLO weight. The public process is: the community first drafts and discusses a proposal; after preliminary review, proposals that passed preliminary review during the previous three months proceed to quarterly DVote. Each proposal is voted on independently, and approved proposals are executed by the protocol operator. The launch parameters list an approximately 7-day voting period, a quorum of 5% of veDOLO supply, and a proposal threshold of more than 1 million veDOLO voting power.

Question 5

How is oDOLO converted to veDOLO, and what determines the discount?

Accepted Answer

oDOLO is an incentive token issued to liquidity providers. It is not DOLO and cannot be directly equated with veDOLO. After receiving oDOLO, users must provide DOLO on a 1:1 basis during a one-week pairing period before using the paired oDOLO to obtain veDOLO at a discount. The longer the lock, the higher the discount: a one-week lock corresponds to 5%, while a two-year lock corresponds to 50%, with a linear relationship between them. Conversion can create a new veDOLO lock or increase an existing lock; this design means participants need to hold or acquire DOLO at conversion and directs the paired liquidity to protocol-owned liquidity.

Question 6

How can oDOLO holders exit without pairing?

Accepted Answer

Participants who do not want to pair oDOLO can use the instant-exit mechanism, but this is not redemption at a fixed price. The DAO determines the buyback price, and buyback funds come from recoup fees paid by users who unlock veDOLO early, which are held in a liquidity pool dedicated to buybacks. If that pool is depleted, buybacks pause until new recoup fees accumulate. Therefore, whether an instant exit is available depends on the buyback price set by the DAO at that time and whether the pool still has funds; this is a separate path from obtaining veDOLO after completing the 1:1 pairing.

Question 7

How should DOLO's supply mechanism be understood?

Accepted Answer

Official token mechanics describe DOLO's total supply as 1 billion tokens and also establish a 3% annual inflation arrangement beginning in Year 4. Therefore, “1 billion tokens” alone cannot be used to infer that no new issuance can occur at any time; the inflation rule must also be considered when understanding supply. This mechanism is intended to provide resources for ecosystem development and liquidity incentives. The DAO may decide to use new tokens for strategic or incentive purposes, or may choose to burn them; this means whether tokens enter a particular use after being generated remains subject to governance decisions.

Question 8

What roles does veDOLO have besides governance?

Accepted Answer

veDOLO's primary role is governance. In addition, the mechanism documentation lists its ability to increase liquidity pool emission rewards and, provided the DAO enables the relevant feature, potentially receive a share of fees generated by protocol operations. Fee distribution does not occur automatically upon holding or locking and depends on whether the DAO enables the feature. This condition defines the boundary of veDOLO benefits: lock duration affects voting weight, and voting power can be used to influence governance matters; however, potential fee sharing and governance rights are different functions, and “potential fee sharing” cannot be regarded as established or guaranteed returns.

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