$THL Tokenomics and the Road Ahead
With the start of Thala’s Token Generation Event rapidly approaching, we’re excited to share more details regarding $THL tokenomics and development roadmap for the protocol.
As a reminder, our Token Generation Event (TGE) will run from March 31st, 7 pm EST (UTC-5) to April 5th, 7 pm EST (UTC-5) through a liquidity bootstrapping pool (LBP), available directly on our dApp with Thala Launch. For more information, be sure to check out our medium post, thread on why we chose LBPs, and documentation to learn more about how they work.
What is $THL?
$THL is the governance token of Thala, where token holders can vote on crucial decisions and enact protocol-wide changes. This includes but is not limited to:
- Adjustments to protocol parameters such as swap fees, vault interest rates, mint fees, etc.
- Contract upgrades that are executable only through governance to ensure the continued development of the protocol.
- Treasury deployments, including treasury swaps with partner protocols, contributor compensation, audits, and more.
- Additional product and cross-chain deployments to expand Thala’s product suite.
- Value accretive measures such as revenue share of protocol fees to $THL holders
Our tokenomics are designed to put Thala’s community first and align the incentives of all stakeholders such that $THL holders are the most significant beneficiaries of protocol growth.
The total supply of THL is capped at 100,000,000 $THL and the distribution is as follows:
- Community — 35% or 35,000,000
To reward users of our dApp, 35% of the total $THL supply will be emitted to incentivize the usage of Thala’s current and future core products. This includes core liquidity pairs on ThalaSwap and the Stability Pool in the CDP module.
- Contributors and Advisors — 20% or 20,000,000
20% of the total $THL supply is allocated to existing and future contributors/advisors of Thala. Contributor/Advisor allocations are subject to a 6 month cliff, followed by a 2-year linear vesting schedule.
- Investors — 20% or 20,000,000
20% is allocated to Thala’s investors, who have supported the protocol in its infancy and have been instrumental in Thala’s continued success. Investor allocations are subject to a 6 month cliff, followed by a 2-year linear vesting schedule.
- Treasury — 15% or 15,000,000
15% is allocated to the Thala treasury, which is fully controlled by DAO governance. These funds are reserved for strategic partnerships, grants, and other miscellaneous items that will ensure protocol growth. 20% of the treasury allocation is unlocked at TGE, whereas the remaining 80% is subject to a linear vesting schedule of 5 years.
- TGE — 10% or 10,000,000
10% of $THL supply will be in circulation during our token generation event through Thala’s liquidity bootstrapping pool product. For more information, read our previous medium post here.
At launch, the circulating supply will be 13,000,000 $THL (13%) which consists of $THL holders through our TGE, unlocked treasury allocation, and protocol-owned liquidity on ThalaSwap. The majority of new $THL supply will enter circulation through incentives (from the community allocation) in the form of $THL emissions. Emissions will be live from launch to incentive protocol usage and select Thala Swap pairs. Community emissions will be halved approximately every 2 years.
Note that contributor and investor allocations are locked for 6-months and vested linearly for 2 years with linear unlocks. The treasury will have 20% of its allocation unlocked initially and the remaining amount vested linearly for 5 years with linear unlocks. A breakdown of $THL’s emissions schedule can be found below along with community emissions.
The Path Moving Forward
A lot has been planned for the future with new developments, critical updates, and revamped tokenomics to ensure continued protocol growth in a sustainable manner.
The ve-model was pioneered by Curve Finance as a way to reward long-term stakeholders who lock their tokens with boosted governance power. Lockers have the ability to emit additional rewards to certain AMM pools through voting as well as earn a portion of the platform fees. $THL will soon follow a similar tokenomics model to kickstart active participation within the Aptos ecosystem.
veTHL will be a weighted 80–20 THL-MOD liqudity pool token (LPT) that can be locked for a duration of 1 to 52 weeks. In return for locking to veLPT, users receive an amount of veTHL exponentially proportional to their lock time, granting voting power to participate in general governance, vote on parameter changes, direct AMM pool emissions, receive protocol fees, and more. More details on veTHL will be revealed in the coming weeks.
Real World Assets (RWAs)
Thala’s approach to Move Dollar hinges on competitive yet low-risk yields that can serve as an alternative collateral to fiat-backed stablecoins. One such avenue of this is via real-world assets (RWAs) — which are sourced off-chain through treasury bills, corporate bonds, credit, and other traditional financial instruments. By integrating yield-bearing RWAs into MOD’s collateral composition, users will have the opportunity to earn strong risk-adjusted yields. With discussions with other protocols well underway, we’re excited to share the full extent of our RWA module soon.
While Aptos is our home base, Thala is ultimately built for Move. As such, we are keen to leverage on our recent partnership with LayerZero to deploy onto Sui and other Move-based chains in the near future. $THL and $MOD, as omnichain fungible tokens (OFTs), will soon be available as native cross-chain assets.
Join us in our upcoming TGE to help make this vision a reality.
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.
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