$THL Token Generation Event

Thala Labs
5 min readMar 24, 2023

Decentralization is one of Thala’s core tenets — a principle that has become more relevant to DeFi protocols than ever in light of recent events. With the sunsetting of our Aptos testnet and mainnet launch only weeks away, Thala must decentralize as a DAO and enable the community to effectively govern critical protocol changes and updates moving forward.

In order to best incentivize continuous participation and active contribution to the protocol, the distribution of the $THL governance token will enable both inflows into the Aptos ecosystem and the bootstrapping of liquidity of Thala’s suite of products.

As such, we are excited to announce the Token Generation Event (TGE) of Thala’s governance token ($THL), which will be conducted on Thala Launch (https://app.thala.fi/launchpad) via the liquidity bootstrapping pool (LBP) between March 31st, 7pm EST (UTC-4) and April 5th, 7pm EST (UTC-4).

LBP Details

The duration of Thala’s TGE will be 5 days, and a maximum of 10% (7,000,000 $THL) of $THL’s total supply will be distributed to the community. The unsold allocation will be used to bootstrap $THL-$MOD liquidity and other core pairs on Thala Swap. The LBP will be conducted against LayerZero Circle, or $USDC bridged through LayerZero, with an initial weight of 98:2 ($THL/$USDC) and an ending weight of 30:70 ($THL/$USDC). Users are encouraged to bridge using https://theaptosbridge.com/bridge or the bridge widget on the Thala dApp.

The estimated starting parameters are as follows:

  • FDV: $313,000,000
  • Price: $3.13
  • $THL Balance: 9,500,000 THL
  • $USDC Balance: $600,000 USDC
  • Swap Fee: 1%

Use of Funds

All proceeds raised during the TGE will exist on Thala’s MomentumSafe multisig treasury addresses. Thala is committed to utilizing up to 50% of the proceeds for direct protocol operations. This includes seeding liquidity for core liquidity pairs, an insurance fund to backstop potential bad debt from vaults and real-world assets, and bug bounties to ensure utmost protocol security. The remainder will be appropriately budgeted to cover contributor salaries, audit costs, legal fees, and other miscellaneous operational costs at the discretion of DAO governance. As the Thala team and the development roadmap continue to expand, the proceeds will bolster Thala’s war chest and position the protocol in becoming the leading DeFi protocol on Aptos and beyond.

Keep Up to Date

We are excited to share more details on the LBP process, product roadmap, and $THL tokenomics leading up to the launch. To stay up to date, join our community at https://discord.gg/thala.

Thala is a decentralized finance protocol powered by the Move language, enabling seamless borrowing of a decentralized, over-collateralized stablecoin in Move Dollar and capital-efficient liquidity provisioning via a rebalancing AMM on the Aptos blockchain.

Website: thala.fi

Twitter: twitter.com/thalalabs

Documentation: docs.thala.fi

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Thala Labs

Thala is a decentralized finance protocol on the Aptos blockchain.