DIP-07: oDOLO Execution Floor
Outcome: Passed
Vote date: June 30, 2026
Official vote: BeraVote
Final vote totals: 3.23M veDOLO for; 1.80M against; 3.59K abstain
Implementation status: Implemented August 11, 2026
Original discussion: Dolomite Governance Forum
Current documentation: oDOLO Execution Floor
The proposal text below is preserved exactly as presented for the governance vote. Only the status summary above is updated over time.
Title
[DIP-07] Establish oDOLO Execution Floor Price
Author(s)
Dolomite Team
Date
2026-06-01
Related Discussions
N/A
Simple Summary
This proposal establishes a $0.03 minimum execution price for oDOLO conversions into discounted veDOLO. The floor applies after the user's lock-duration discount is calculated. It does not set a minimum DOLO market price and does not prevent DOLO from trading below $0.03.
Abstract
oDOLO is designed to reward protocol participation while creating long-term alignment through veDOLO locks and protocol-owned liquidity. Users pair oDOLO with DOLO, then execute that paired oDOLO to purchase veDOLO at a discount based on lock duration.
This proposal adds a floor to the final discounted execution price. The system should first calculate the user's normal oDOLO execution price based on the current DOLO market reference price and the selected veDOLO lock duration. If the resulting discounted price would be below $0.03 per DOLO, the execution price should instead be capped at $0.03.
The practical effect is simple: users can still execute oDOLO when DOLO trades below, at, or near $0.03, but the protocol will not sell discounted veDOLO below a $0.03 implied DOLO price.
Motivation & Background
oDOLO is not intended to function only as a short-term incentive. Its purpose is to help convert protocol participation into longer-term alignment by encouraging users to acquire DOLO, pair it with oDOLO, and lock into veDOLO. That mechanism works best when the final execution price remains economically meaningful for the protocol.
Under the current oDOLO design, users can purchase veDOLO at a discount from market price. The discount scales with lock duration, from 5% for short locks up to 50% for a two-year lock. If DOLO trades at $0.03 and a user receives the full 50% lock discount, the implied execution price would be $0.015 per DOLO, a price that's rather unfavorable for the protocol.
A $0.03 execution floor keeps the discount mechanism intact while placing a hard lower bound on the final price paid for discounted veDOLO. This protects the protocol from selling veDOLO too cheaply during periods when DOLO trades at low prices.
Proposal Type
Tokenomics Parameter Update
Specification
This proposal authorizes the implementation of a $0.03 minimum final execution price for oDOLO conversions into discounted veDOLO.
Execution Floor
Floor price: $0.03 per DOLO
Applies to: the final discounted oDOLO execution price when paired oDOLO is converted into veDOLO.
Execution Price Rule
When a user executes paired oDOLO to purchase discounted veDOLO, the system should calculate:
Discounted execution price = current DOLO market reference price x (1 - applicable lock-duration discount)
The final execution price should then be:
Final execution price = max(discounted execution price, $0.03)
This means the floor applies to the amount the user actually pays after the lock-duration discount, not to the pre-discount market reference price.
Examples
If DOLO trades at $0.08 and a user selects a two-year lock with a 50% discount, the discounted execution price is $0.04. The $0.03 floor does not apply, so the user executes at $0.04 per DOLO.
If DOLO trades at $0.06 and a user selects a two-year lock with a 50% discount, the discounted execution price is $0.03. The user executes at the floor price of $0.03 per DOLO.
If DOLO trades at $0.04 and a user selects a two-year lock with a 50% discount, the discounted execution price would be $0.02. The floor applies, so the user executes at $0.03 per DOLO instead.
If DOLO trades at $0.03, a two-year lock would normally imply a $0.015 execution price. The floor applies, so the user executes at $0.03 per DOLO. In that case, the user receives no effective discount to spot market price. Scope
This proposal does not change:
Total DOLO supply
oDOLO emission schedules
Chain-level oDOLO allocation weights
Asset-level oDOLO allocation weights
oDOLO claim eligibility
oDOLO pairing duration
veDOLO lock duration options
Existing governance rights attached to veDOLO
Economic & Market Impact
Expected positive impact areas:
Protocol-owned liquidity support: A minimum final execution price helps ensure oDOLO executions continue contributing meaningful value to the protocol.
Reduced downside reflexivity: If DOLO trades near or below $0.03, longer locks no longer create increasingly cheap oDOLO executions below the floor.
Cleaner long-term alignment: Users can still access discounted veDOLO, but the system avoids selling veDOLO at prices below the intended minimum.
Potential costs and considerations:
If DOLO trades at or below $0.03, users executing oDOLO may receive no effective discount to the spot market price.
Some users may delay execution when the floor removes most or all of the effective lock-duration discount.
Users who are not paying attention may still choose a longer lock even when it does not improve the execution price.
The floor may need to be revisited if DOLO market structure, liquidity, or governance preferences materially change.
Risks & Considerations
User perception risk: Users may view the floor as less favorable when DOLO trades near or below $0.03. Communication should explain that the floor caps the final discounted execution price rather than changing the market price of DOLO.
Execution-volume risk: oDOLO execution volume may decline if users wait for DOLO to trade high enough for the lock-duration discount to have value.
Oracle/reference-price risk: The implementation must use a reliable DOLO market reference price before applying the lock-duration discount and execution floor.
Parameter rigidity risk: A fixed floor is simple, but market conditions can change. Governance should retain the ability to adjust the floor in a later proposal.
UI clarity risk: The interface should clearly show when the $0.03 floor is active, when additional lock duration no longer improves the execution price, and when the user is receiving little or no effective discount.
Implementation Plan
Upon governance approval:
Update veDOLO lock smart contract behavior
Ensure the new behavior is properly reflected in the UI and appropriate information and warnings are shared with users
Monitor oDOLO execution volume, veDOLO lock behavior, and user feedback after the change goes live.
Success Criteria & Metrics
Successful implementation of the $0.03 minimum final oDOLO execution price
Correct application of the lock-duration discount before the execution floor is enforced
Clear UI display with the market reference price, selected discount, final execution price, and active floor state
Clear warning or state display when a longer lock no longer improves the execution price because the floor is active
No high or critical issues related to oDOLO execution after launch
Continued monitoring of oDOLO claims, pairings, executions, and veDOLO lock behavior
Additional Information & References
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