What Is Blackhole (BLACK)? Deflationary DEX on Avalanche

Key Takeaways:

Blackhole is a specialized decentralized exchange (DEX) on the Avalanche blockchain, designed as a liquidity hub for emerging projects.
The native token, BLACK, is used for governance, staking, and as an emission reward for liquidity providers.
It introduces a dual veNFT system: time-locked "Singularity veNFTs" and permanently burned "Supermassive veNFTs" for governance.
Blackhole features a built-in deflationary mechanism where minting Supermassive veNFTs permanently removes BLACK from the total supply.
The project had a community-owned launch where 100% of the initial circulating supply went to the community, and team tokens were burned, eliminating future sell pressure.

Introduction

Blackhole is a next-generation decentralized exchange (DEX) making waves on the Avalanche blockchain. Positioned as a specialized liquidity hub, it aims to solve the common DeFi problem of fragmented liquidity by creating a sustainable ecosystem for new projects and investors. By pioneering an improved ve(3,3) tokenomics model and ensuring a fully community-owned launch, Blackhole is establishing a new standard for protocol design and long-term alignment. Explore Phemex Academy to learn more about innovative DeFi projects.

Summary Box (Quick Facts)

Ticker Symbol: BLACK
Chain: Avalanche C-Chain
Contract Address: 0xcd94a87696fac69edae3a70fe5725307ae1c43f6
Circulating Supply: Approximately 128.82 million BLACK
Max Supply: 500 million BLACK (designed to be deflationary)
Primary Use Case: Governance and liquidity incentives on a decentralized exchange.
Current Market Cap: Approximately $56.53 million (as of late July 2025)
Availability on Phemex: No (as of writing)

What Is Blackhole (BLACK)?

Blackhole is a decentralized exchange built on the Avalanche blockchain, serving as a central hub for liquidity and trading. What is Blackhole explained simply? It's a platform where users can trade cryptocurrencies directly, with a special focus on supporting new and emerging projects in the GameFi and AI sectors through innovative liquidity solutions.

Its relevance comes from its unique approach to liquidity creation and governance. Through Genesis Pools, Blackhole allows communities and project teams to collaboratively fund liquidity pools before a Token Generation Event (TGE), driving immediate engagement and establishing a stable trading environment from day one.

How Many BLACK Are There?

Blackhole has a maximum initial supply of 500 million BLACK tokens. However, a key distinguishing feature is its built-in deflationary mechanism.

At the Token Generation Event (TGE), 100% of the circulating supply went directly to the community, marking a truly community-owned launch. The team and foundation tokens were not vested; instead, they were permanently burned to mint Supermassive veNFTs, removing them from circulation forever. This unique approach ensures there will never be sell pressure from future team token unlocks.

The total supply of BLACK is designed to decrease over time. Whenever a user mints a "Supermassive veNFT" by permanently locking their tokens, the underlying BLACK is sent to a burn address. This steadily reduces the total supply, increasing scarcity and driving long-term value.

What Does BLACK Do?

The BLACK token is the core utility and governance token of the Blackhole ecosystem. Its functions are twofold:

Incentivizing Liquidity: BLACK tokens are emitted as farming rewards to liquidity providers (LPs) who stake their assets in the protocol's pools. This incentivizes deep and continuous liquidity for smooth trading.
Governance through veBLACK: Users can lock their BLACK tokens to mint one of two types of vote-escrowed NFTs (veNFTs), which grant them governance rights and a share of the protocol's revenue.
- veNFT holders can vote weekly on which liquidity pools receive BLACK emission rewards.
- In return for voting, they receive a share of the trading fees generated by the pools they voted for, as well as 100% of any voting incentives (bribes) contributed by partner projects to that specific pool.

BLACK vs. Uniswap (UNI)

As two leading decentralized exchanges, Blackhole and Uniswap serve a similar core purpose but differ significantly in their technology, tokenomics, and market focus. Here is a direct comparison:

Feature	Blackhole (BLACK)	Uniswap (UNI)
Underlying Blockchain	Avalanche	Ethereum (Primary), with deployments on other chains
Tokenomics Model	Improved ve(3,3) with dual veNFTs	Standard governance token (UNI)
Governance Focus	Directing emissions to specific liquidity pools	Voting on protocol-wide proposals
Key Economic Feature	Deflationary mechanism (burning BLACK for Supermassive veNFTs)	No native deflationary mechanism in the UNI token
Market Niche	Specialized liquidity hub and launchpad for new projects	General-purpose, industry-leading Automated Market Maker (AMM)
Initial Distribution	100% Community-owned fair launch (no team/VC allocations)	Included allocations for team, investors, and advisors
User Costs	Low fees and fast transactions	Historically higher fees and slower transactions on Ethereum mainnet

The Technology Behind Blackhole

Blackhole's innovation lies in its improved ve(3,3) tokenomics model, a design rooted in game theory to align the incentives of all stakeholders with the long-term success of the protocol.

How It Works
The protocol operates in weekly cycles called "epochs."

Liquidity providers (LPs) stake assets and receive BLACK emission rewards.
veNFT holders vote on which pools receive these emissions.
Voters are then rewarded with trading fees and bribes from the pools they supported.

Pioneering a Dual veNFT Mechanism

Blackhole introduces two types of veNFTs for governance:

Singularity veNFT: Minted by locking BLACK tokens for a period of one week to four years. The longer the lock, the greater the voting power. This power decays as the lock period nears its end.
Supermassive veNFT: This is a unique NFT minted by permanently locking (burning) BLACK tokens. This significant commitment is rewarded with exclusive, powerful benefits:
- Non-decaying voting power: The voting power never diminishes over time.
- 10% voting power boost: An additional boost on top of its base power.
- 10% rebase rate boost: A bonus on rewards earned.

This dual system, especially the Supermassive veNFT, creates a sustainable ecosystem by reducing the circulating supply and rewarding long-term conviction.

Advanced AMM Offering
Blackhole also offers a comprehensive suite of Automated Market Maker (AMM) models, including Concentrated Liquidity, Classic UniV2-style, and Stablecoin AMMs, allowing for a wide range of trading and liquidity strategies.

Team & Origins

Blackhole is backed by influential figures in the Web3 space, including Ellio Trades and Alex Becker. However, its most defining characteristic is its commitment to decentralization and community ownership from day one.

Instead of a traditional vesting schedule, the team and foundation burned all their allocated tokens to mint Supermassive veNFTs. This means the team holds no liquid tokens and can never create sell pressure. This transparent, on-chain approach embodies the credo: “don’t trust, but verify on-chain,” distinguishing Blackhole from other projects where communities must trust that a team will re-lock its tokens.

Key News & Events

Mainnet Launch (July 11, 2025): The Blackhole protocol officially went live on the Avalanche blockchain.
Token Generation Event (July 16, 2025): The BLACK token launched with 100% of its initial circulating supply going to the community via an airdrop that included leading DeFi and NFT project communities.
Rapid TVL Growth: Shortly after its launch, Blackhole became the largest DEX on Avalanche by Total Value Locked (TVL), surpassing $250 million.

Is BLACK a Good Investment?

The Blackhole investment potential is supported by several unique factors that differentiate it from other projects.

Strong Tokenomics: The deflationary mechanism tied to Supermassive veNFTs is designed to increase scarcity over time.
No Team Sell Pressure: With all team and foundation tokens burned at launch, a major source of potential sell pressure has been permanently eliminated.
Community-Owned: The 100% community-owned TGE fosters a strong, aligned user base from the start.
Market Position: As a specialized liquidity hub for new projects on a high-speed chain like Avalanche, it is well-positioned to attract a growing ecosystem.

Risks: Like any cryptocurrency, BLACK is subject to market volatility. Its success is dependent on its ability to continue attracting high-quality projects and maintaining a vibrant community of liquidity providers and voters.

Disclaimer: This is not financial advice. Crypto trading involves risks; only invest what you can afford to lose.

How to Buy BLACK on Phemex?

As of this writing, you cannot buy BLACK on Phemex as it is not yet listed. To acquire BLACK, you can use the Blackhole DEX on the Avalanche network. To potentially trade BLACK on Phemex in the future, monitor the platform's official announcements. Always check the latest news about BLACK and the current BLACK price before making trading decisions.

FAQs

What is the difference between a Singularity and a Supermassive veNFT?
A Singularity veNFT is created by time-locking BLACK tokens for up to four years and has decaying voting power. A Supermassive veNFT is created by permanently burning BLACK tokens and offers permanent, non-decaying voting power with additional boosts.

How does Blackhole prevent sell pressure from its team?
The team and foundation burned 100% of their allocated tokens at the Token Generation Event to mint Supermassive veNFTs. This means they hold no liquid tokens that could be sold on the market.

What is the main utility of the BLACK token?
The BLACK token is used to incentivize liquidity providers through emission rewards and to grant governance power to holders who lock their tokens to mint veNFTs, allowing them to earn protocol fees and bribes.