# THALES Tokenomics
THALES is a standard ERC-20 used by the community as the governance token of Thales DAO. Token distribution follows the outline below:
### Current Tokenomics Breakdown
**8.75% to SNX stakers**
* 2.25% SNX staking distribution up until implementation of [**TIP-37**](https://github.com/thales-markets/thales-improvement-proposals/blob/main/TIPs/TIP-37.md) - **Distribution Completed**
* 4.5% Retroactive distribution for SNX staking (L1 and OP) - **Distribution Completed**
* 2% Airdropped to every SNX staker (L1 and OP) - **Distribution Completed**
**18% Thales Core Contributors** - Vesting for 3 years starting Q2 2022
**15% THALES stakers** - Ongoing 3 year long distribution that started Q4 2021 Includes SNX stakers in ~~gamified~~ staking rewards bonus, along with protocol volume bonus
**58.25% Growth Fund:**
* **9% to Strategic Partners** - 2 year long distribution that started Q4 2021
* **2% Crowdpooling event on DODO - ****Distribution Completed**
* **1% Initial DODO LP reward - ****Distribution Completed**** **
* **46.25% to ThalesDAO treasury**
* 18% Distributed to Treasury on TGE to be used as ad-hoc Growth incentives
* 2% sent back to treasury from disengaged Thales Core Contributor ([**TIP-9**](https://github.com/thales-markets/thales-improvement-proposals/blob/main/TIPs/TIP-9.md))
* 26.25% reallocated to Treasury from termination of SNX rewards ([**TIP-37**](https://github.com/thales-markets/thales-improvement-proposals/blob/main/TIPs/TIP-37.md))
{% hint style="info" %}
You can find a more detailed explanation of THALES tokenomics in this [Medium article](https://thalesmarket.medium.com/thales-tokenomics-v2-0-bd4b59c4e74c).
{% endhint %}
### **THALES Tokenomics History**
The Thales governance structure has modified the original distribution plan to improve long-term alignment with the Thales protocol and DAO
The original distribution plan from 2021 was as follows:
**35% to SNX stakers**
* 18% Ongoing SNX staking distribution
* 15% Retroactive distribution for SNX staking (L1 and OP)
* 2% Airdropped to every SNX staker (L1 and OP)
**30% Growth fund**
* 18% ThalesDAO treasury to fund further development
* 9% to Strategic Partners
* 2% Crowdpooling event on DODO
* 1% Distributed over 20 weeks for LPs on DODO THALES/ETH pool 2
**20% Thales Core Contributors**
**15% THALES stakers**
This original distribution has gone through 4 major improvements and modifications:
### Updated distribution to Synthetix stakers
Part of the initial tokenomics plan included 35% of the THALES total supply to be distributed to SNX stakers to ensure a long-term alignment between Thales and Synthetix communities. Subsequent TIPs (Thales Improvement Proposals) introduced changes to the protocol to amended this distribution.
* [**TIP-18**](https://github.com/thales-markets/thales-improvement-proposals/blob/main/TIPs/TIP-18.md) paused the retroactive distribution to SNX stakers as part of the introduction of gamified staking by TIP-17
* [**TIP-32**](https://github.com/thales-markets/thales-improvement-proposals/blob/main/TIPs/TIP-32.md) gave a deadline for claiming the one-off airdrop. Unclaimed THALES were returned to the treasury of ThalesDAO.
* [**TIP-37**](https://github.com/thales-markets/thales-improvement-proposals/blob/main/TIPs/TIP-37.md), championed by Kain (Synthetix co-founder) effectively stopped the vesting of retroactive distribution for SNX stakers, and forfeited his own allocation as the largest SNX staker for the greater good of Thales protocol.
When TIP-37 was approved by Thales governance, the THALES token was effectively distributed to SNX stakers as follows:
* 4,500,000 THALES to retroactive SNX stakers
* 2,250,000 THALES to ongoing SNX stakers
* 2,000,000 THALES to any SNX staker via one-off airdrop
After TIP-37 was implemented approx. 26,250,000 THALES tokens were returned to ThalesDAO treasury.
###
### Token Buyback and Burn
In May 2022, the idea of utilizing [**SafeBox**](https://docs.thalesmarket.io/thales-parimutuel-markets/safebox) funds (a safeguard smart contract that takes a fee from AMM buys and sells) to start a buyback and burn program for the THALES token was specified on [**TIP-50**](https://github.com/thales-markets/thales-improvement-proposals/blob/main/TIPs/TIP-50.md). This program was subsequently modified by [**TIP-59**](https://github.com/thales-markets/thales-improvement-proposals/blob/main/TIPs/TIP-59.md), increasing the buyback frequency, and [**TIP-124**](https://github.com/thales-markets/thales-improvement-proposals/blob/main/TIPs/TIP-124.md) paused Buyback and Burn. Buyback and Burn was resumed thanks to [**TIP-141**](https://github.com/thales-markets/thales-improvement-proposals/blob/main/TIPs/TIP-141.md).
Buyback and Burn was implemented on Arbitrum with [**TIP-163**](https://github.com/thales-markets/thales-improvement-proposals/blob/main/TIPs/TIP-163.md).
### Reduction of Allocation to Thales Core Contributors
As explained in [**TIP-9**](https://github.com/thales-markets/thales-improvement-proposals/blob/main/TIPs/TIP-9.md), after a Thales Core Contributor stopped contributing and communicating with the rest of the team, the situation was shared with the community-at-large and it was decided by governance to re-allocate his future THALES tokens, send back 2% to ThalesDAO treasury, and reduce the Thales Core Contributor part of the distribution from 20% to 18%.
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