# The ve(3,3) Flywheel

It is in veBEAM holders' best interests to vote for the reward pools that have the most trading fees and bribes, and through their votes more $BEAM emissions are directed to the most productive pools (boosting liquidity providers' farming APRs). \
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Additionally, as veBEAM holders are the only stakeholders with access to the trading fees of Beam, it is in users' best interests to continually grow their veBEAM position through providing liquidity or buying on the open market.

This aligns the incentives of veBEAM holders with liquidity providers, as well as traders (as higher farming APRs attracts more liquidity, which reduces slippage on trades).\
\
**The ve(3,3) flywheel is as follows:**\
1.) Emissions are distributed to liquidity pools based on veBEAM holders' votes\
2.) Incentives / APRs attract farmers to provide liquidity to these liquidity pools, increasing TVL\
3.) Higher TVL = higher trading fee revenue\
4.) Higher trading fee revenue means more rewards for veBEAM holders to claim for the week (increasing voting APR)\
5.) Higher rewards means more demand to buy and lock veBEAM to increase weekly reward share\
6.) More demand for $BEAM = higher $BEAM price\
7.) Higher $BEAM price = higher liquidity pool APRs when emissions are distributed next week\
8.) Flywheel repeats


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