🪙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 - 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)

    • 26.25% reallocated to Treasury from termination of SNX rewards (TIP-37)

You can find a more detailed explanation of THALES tokenomics in this Medium article.

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 paused the retroactive distribution to SNX stakers as part of the introduction of gamified staking by TIP-17

  • TIP-32 gave a deadline for claiming the one-off airdrop. Unclaimed THALES were returned to the treasury of ThalesDAO.

  • TIP-37, 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 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. This program was subsequently modified by TIP-59, increasing the buyback frequency, and TIP-124 paused Buyback and Burn. Buyback and Burn was resumed thanks to TIP-141.

Buyback and Burn was implemented on Arbitrum with TIP-163.

Reduction of Allocation to Thales Core Contributors

As explained in TIP-9, 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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