The (3,3) Game Theory
SLOHM inherits Olympus DAO's famous game theory mechanism, enhanced by Bitcoin's natural slowness.
The Payoff Matrix
| Player B Stakes | Player B Sells | |
|---|---|---|
| Player A Stakes | (3, 3) Both win | (1, -1) A loses |
| Player A Sells | (-1, 1) B loses | (-3, -3) Both lose |
Understanding the Outcomes
(3, 3) - The Nash Equilibrium
When everyone stakes:
- Supply is locked, reducing sell pressure
- Price remains stable or increases
- Everyone earns rebase rewards
- Treasury grows through bonding
- Result: Positive sum game
(-3, -3) - The Worst Outcome
When everyone sells:
- Massive sell pressure crashes price
- No staking rewards earned
- Treasury value decreases
- Result: Everyone loses
Mixed Outcomes
- (1, -1): If you stake while others sell, you still earn rewards but face price depreciation
- (-1, 1): If you sell while others stake, you miss rewards but might time short-term exits
Why (3,3) is Stronger on Bitcoin
- 10-minute blocks — Selling takes time, giving stakers an advantage
- True 5-day vesting — No bridges or L2s to escape early
- Exit friction — Defection is slow and visible
- OPNet finality — State changes are permanent
- No MEV — Can't front-run or sandwich attack easily
The natural slowness of Bitcoin makes coordination easier and defection harder.
Game Theory in Practice
During Growth
When the protocol is growing:
- Bonding is attractive (discounted SLOHM)
- Staking rewards are high
- (3,3) equilibrium is naturally stable
- Treasury accumulates assets
During Stress
When price pressure occurs:
- Bitcoin's slowness provides time
- Stakers have a natural advantage
- Community coordination is easier
- Treasury backing provides a floor
The SlowFi Advantage
On Ethereum, coordinated selling can happen in seconds. A whale can dump, trigger a cascade, and exit before anyone reacts.
On Bitcoin via OPNet:
- Each block takes ~10 minutes
- Large sells require multiple transactions
- The community can observe and respond
- Panic selling is mechanically slower
This creates a more thoughtful market dynamic that favors long-term holders.
Achieving (3,3)
To maximize (3,3) outcomes:
- Stake your SLOHM
- Hold through volatility
- Bond when discounts are good
- Participate in governance
- Spread the word