> For the complete documentation index, see [llms.txt](https://hybra-foundation.gitbook.io/hybra-foundation/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://hybra-foundation.gitbook.io/hybra-foundation/tokenomics/hybra-g33-token-system-overview.md).

# Hybra G33 Token System Overview

## Hybra Token System Overview

The Hybra token economy builds upon the proven **ve(3,3)** model, but takes it a step further.\
Our goal is to strike a **better balance between liquidity, governance power, and long-term value capture**.

#### Learning from ve(3,3)

Traditional ve(3,3) systems have shown:

* **Strong governance alignment** – emissions are directed by veToken holders
* **Sticky liquidity** – LPs are incentivized to stay through bribes and boosted emissions
* ❌ **Complexity for new users** – many users just sell rewards rather than lock, leading to dilution

Hybra takes these lessons and improves on them by adding **gHYBR**, a yield-bearing ERC20 that captures the benefits of ve(3,3) while restoring optionality and capital efficiency.

#### Why This Design?

Hybra introduces a **triple-path reward system**:

* **veHYBR**: maximizes governance power (for long-term voters and ecosystem builders)
* **HYBR**: provides immediate liquidity (for short-term participants)
* **gHYBR**: a hybrid option that offers liquidity + compounding + automatic value accrual

#### The Role of gHYBR

gHYBR is the centerpiece of Hybra's design.\
It is a unique ERC20 that combines multiple benefits into a single, flexible asset:

* **Liquidity** – tradeable 24h after minted ( to avoid interest arbitrage especially during epoch flip )
* **Compounding Yield** – continuously increases in value as protocol revenue is reinvested
* **Penalty Rewards** – captures 20% penalty from users claiming direct $HYBR
* **Automatic Voting** – backed by veHYBR that votes on gauges based on maximized yield result
* **Buyback & Re-lock Mechanism** – revenue is used to buy HYBR and re-lock as veHYBR, reinforcing the flywheel

> **Why “gHYBR”?**\
> The “g” stands for **Governance** and **Growth** — gHYBR is both a governance-powered token (backed by veHYBR) and a value-accruing asset that grows over time.

This design allows users to **participate in governance passively**, **earn auto-compounded yield**, and still retain the ability to exit without the long lockups of traditional ve(3,3).

| Token  | Type                | Core Utility                                                                          |
| ------ | ------------------- | ------------------------------------------------------------------------------------- |
| HYBR   | Liquid Token        | Free trading, bribes, liquidity incentives                                            |
| veHYBR | Governance Lock     | Vote on gauges, governance proposals, earn bribes and fee share                       |
| gHYBR  | Yield-Bearing ERC20 | Liquidity + compounding + penalty rewards + auto-voting + buyback-driven appreciation |

**User Journey**

1. Provide liquidity
2. Earn trading fees + emissions
3. Choose one of three paths for emissions: **veHYBR**, **HYBR**, or **gHYBR**