Cointime

  • BTC $17198.93 -0.02 %
  • ETH $1283.14 0.08 %
  • BCH $111.90 0.36 %
  • SOL $13.73 0.22 %
  • XRP $0.39 -0.08 %
  • BNB $289.30 0.07 %

THE Tokenomics

Cointime Staff· 6 min read

A self-optimizing decentralized exchange and a liquidity layer, owned by protocols and the community. A grand design with tokenomics that seek to inspire the best behavior from all participants for the greater good of all stakeholders.

Launch partners will receive an initial veTHE position to help them get started. A group of loyal users from each partner protocol will participate in veTHE/THE airdrop to users, which early Thenians will also be a part of. In total we expect over 10,000 users to be airdropped a mix of locked and unlocked tokens.

While early participants will thrive thanks to the initial veTHE allocation, THE tokenomics incentivize mutual value creation, and discourage actions that go against the ve(3,3) core principles.

THE Definitions

THE — BEP-20 utility token of the protocol.

THE emissions currently have two key objectives:

  • Reach and maintain a low level of trading slippage: THE are emitted as farming rewards to incentivize deep liquidity provision.
  • Encourage decentralized governance: THE can be used to take part in the governance for continuous development of the platform. The long term goal is to achieve true decentralization.

veTHE — ERC-721 governance token in a form of an NFT (non-fungible token), making it transferable. It can be fractionalized and sold on a secondary market despite the lock.

veTHE is the vote escrowed version of THE. Users can lock their THE tokens for up to 2 years to get veTHE. The longer the lock, the higher the veTHE received. Protocols need to hold at least 0.1% of the total veTHE supply to open a gauge.

veTHE utility

  • Access to revenue: veTHE holders can vote for gauges (pools) on a weekly basis, and access the fees and the bribes generated by the associated pool
  • Governance participation: veTHE holders can take part in and cast votes for the protocol improvement proposals

THE Emissions

  • ve(3,3): The system that combines Olympus DAO anti-dilutive rebase mechanism and vote escrow tokenomics. On THENA, the rebase is set at a modest 30%, offering partial protection from dilution. This was done to avoid concentration of the veTHE supply early on — which would discourage late entrants. In order to retain or increase their share, protocols will have to actively lock THE — benefiting the ecosystem over the long term.
  • Gauge: A pool with dynamic THE rewards based on veTHE weekly voting allocation. No negative voting.
  • Bribes: Rewards set by a third party on a gauge to veTHE holders in exchange for their votes.
  • Max Lock: 2 years
  • Farming boost: Not included

Emissions Specifications

  • Weekly emissions: 2,600,000 THE
  • Weekly emissions decay: 1.1%
  • Weekly dev allocation: 4%
  • Weekly veTHE max rebase: 30%
  • Weekly emissions for LPs: 66%

Fair Launch Token Distribution

THENA is owned by protocols and users

veTHE Airdrop for Protocols

17% of the initial supply will be airdropped to protocols that demonstrate their willingness to engage with our liquidity layer. When evaluating the available protocols, we examined a wide range of factors, such as TVL, trading volume, and the product itself. We tried to find a balance between native protocols for BNB and those from other chains.

Initial allocation for protocols that have been announced

veTHE/THE Airdrop for Users

36% of the initial supply will be distributed to regular users of partner protocols, theNFT minters, and qualifying early Thenians from the community. Users will be chosen based on behaviors that promote long-term stability, such as:

  • Long-term locking/stacking
  • Long-term token holding
  • Long-term and recurring participation in governance proposals
  • Continuing involvement in protocol following bad reputational events (hacks, exploits etc.)

Each protocol will submit us a list of users who they deem fit under the criteria mentioned above.

Airdrop Scoring System

The final amount airdropped will be based on a DeFi scoring system. More points equals a larger airdrop at launch. The maximum amount of points will be capped.

Points will be given for:

  • Minting theNFT (highest number of points)
  • Address on partner list
  • Volunteer/contributor role
  • THE list role (wallet linked)

Ecosystem Grant

25% of the initial supply will be dedicated to funding a wide range of projects that aim to accelerate the growth of THENA. Shortlisted projects will receive significant backing from the core team (developer, marketing, business development, etc.). Any significant spending originated from the Ecosystem grant will require approval from veTHE holders through snapshot.

Team Allocation

18% of the initial supply will be distributed to the team to engage them in the long-term success of THENA. The team allocation has been balanced between veTHE and THE vested tokens.

The core team members will have their interests aligned with THENA by receiving a percentage of the initial supply in the form of voted escrow tokens. This allocation allows team members to participate in the upside of the protocol, while having a long-term oriented position.

First, core team members will vote for core pair gauges on THENA inception in order to achieve the goal of deep liquidity and extremely low slippage for high volume pairs that are not backed by bribing entities — such as BNB, BTC and THE denominated pairs. Second, this initial allocation ensures that the core team has enough initial control over the protocol to achieve the original vision of THENA. The lower than typical 30% anti-dilution level of veTHE will further encourage the long-term greater decentralization of the governance and will balance the team’s initial share.

To add an extra degree of protection and prevent team members from behaving maliciously, the initial veTHE team allocation will be kept under THENA’s multisig. Additionally, since the veTHE holders are entitled to the protocol revenue — through bribes and fees — we choose to balance the team allocation with vested THE tokens. Thus, we encourage a fair distribution of the revenue among stakeholders.

Team allocation balance between THE and veTHE:

  • 60% as veTHE locked for 2 years, relocked every week for a minimum period of 1 year
  • 40% as THE vested for 2 years with a 1-year cliff

Initial Liquidity

4% of the initial supply will be paired with BUSD and/or BNB to provide enough THE liquidity at launch.

theNFT Bootstrapping Program

theNFT is separate from THE token, and cannot be fractionalized. It is transferable, and can be staked for revenue sharing.

  • 60% of funds raised will be used to top up bribes & incentivize locking
  • Duration: 3–4 months
  • theNFTs receive a share of trading fees generated by THENA with the following schedule: 20% for 3 months, 15% for 3 months, 10% in perpetuity after 6 months
  • theNFT minters will receive an airdrop as part of the initial distribution (highest number of points in the scoring system)

A Public Good

The objective of THENA’s tokenomics and initial token distribution is to engage users, protocols, liquidity providers, and token holders to behave in the most sustainable ways. The ve(3,3) model has been adjusted to encourage the long-term decentralization of THENA and enable dynamic governance. THENA is meant to be a public good for the BNB chain ecosystem and community.

Join us to build better DeFi for everyone.(url:https://medium.com/@ThenaFi)

All Comments