New tokenomics for the Terraport protocol


The Future of TERRA: A Strategic Tokenomics Overhaul

We’re thrilled to unveil an exclusive preview of our groundbreaking plan to revolutionize the tokenomics of the Terraport protocol. This initiative has been meticulously designed to intrinsically strengthen the token economy, recognizing and incentivizing the active engagement of our valued community. Our primary goal is to chart a clear course toward sustainable growth and expanded value for all holders.


A Reformulated Economic Model: Fees and Incentives

The existing tax will undergo a significant reformulation, in tandem with the Treasury contract. It will now be strategically divided into two fundamental pillars, each engineered to optimize the performance of the TERRA token. This reorganization will ensure a clear allocation of funds, maximizing their impact across the entire Terraport ecosystem.


Pillar 1: The Burn Component – Supply Optimization for Value Creation

50% of the tax will be entirely dedicated to a continuous burn mechanism, a crucial element for reducing the token supply and its subsequent appreciation:

  • Daily Direct Burn: Every day, a variable portion of tokens, dynamically calculated based on transaction volumes, will be systematically removed from circulation through buyback/burn operations. This timed process aims to generate consistent and robust deflationary pressure, directly contributing to the scarcity and intrinsic value of TERRA.

These operations will be managed with utmost efficiency and transparency, ensuring rapid execution, with randomized timings within 24 hours, and impeccable process integrity.


Pillar 2: The Incentives Component – Rewarding Community Engagement

The other 50% of the tax will be fully allocated to reward the most active and dedicated members of our community. We’ve engineered a self-sufficient, multi-level reward system, conceived to recognize diverse forms of participation:

  • Dynamic Staking: The new Dynamic Staking contract (developed with the invaluable support of the Selenium team) will offer:
    • The opportunity to simultaneously earn multiple tokens, including LUNC, USTC, etc. (excluding TERRA).
    • It will feature a 14-day unbound period for the TERRA token.
    • The percentage of accumulated rewards in the Treasury will be automatically added weekly to the new staking contract, with the possibility of further integrations and the release of additional L2 tokens already held within the Terraport Treasury, directly benefiting staking participants.
  • Dynamic Farm: Those who contribute to the liquidity of the TERRA/LUNC pool through the new Dynamic Farm will be rewarded with LUNC and BLUNC. The system will convert the assigned percentage of LUNC and delegate them to the Terraport validator in exchange for BLUNC to be distributed to users.
    • The accumulated percentages of LUNC and BLUNC will be automatically added weekly to the farm contract, incentivizing an increase in reward quantities over time, bolstering market stability and depth, and also ensuring a more robust Liquid Staking system for even more lucrative farming.
  • USDC Giveaway: An exciting innovation within our incentive framework, the automated USDC Giveaway system is structured to distribute USDC. This reward mechanism is layered to stimulate engagement at different frequencies:
    • Daily Rewards: Designed to incentivize daily activity, with qualification criteria based on transaction volumes.
    • Weekly Rewards: Recognition for continuous participation throughout the week.
    • Final/Monthly Rewards: The pinnacle of our reward program, aimed at celebrating the most dedicated contributors with the greatest long-term impact.

Transparency, Automation, and Community-Driven Governance

The reward distribution system will be characterized by sophisticated automation and dynamism that will intelligently adapt to available liquidity, ensuring the program’s long-term sustainability. Transparency remains a core principle: we are developing a comprehensive public dashboard that will provide real-time insights into liquidity, converted volumes, qualification parameters, and winners.


It’s crucial to emphasize that the implementation of these strategic transformations will require community approval through a series of votes via Terraport Governance. Your active participation in this process will be pivotal for the Treasury update and for the inauguration of this new era of growth and prosperity for Terraport.

We are profoundly convinced that this innovative approach will generate tangible benefits for all participants in the Terraport ecosystem. We anticipate releasing more detailed information on every aspect of this plan in the near future.

We invite you to stay updated on all news and to actively participate in building the future of Terraport!

The Terraport Team.

10 Likes

This proposal is really fantastic we could reach heights never reached

2 Likes

Seconded.. great initiative.. bringing back value to holders.

2 Likes

Is the Current Staking where Terra is Locked going to have the option to Unstake and then Stake in the new Staking Contracts?

I don’t think so, they will probably end and no more Staking with rewards will be created in TERRA

1 Like

Excellent way to make Terra more deflationary and interesting for holders! I like the approach.

3 Likes

this is fantastic news, revolutionizing the token like this will bring benefits and above all will be good for everyone. keep it up team terraport :100::100::flexed_biceps::flexed_biceps::flexed_biceps::flexed_biceps:

3 Likes

Many people did not quite understand the potential of this proposal. After this update those who want I TERRA will have to buy them and they will no longer have them for free as they have them now with the old system! Deflation will increase a lot

4 Likes

Really well thought ot proposal.

Favorable🔥

2 Likes

Looks like a good proposal. Let’s do it. Yes from me.

Can’t wait to vote. This is a big YES for me .
Great job team :+1:t2::handshake:.

Hello,

So if I understand correctly, the current Terra staking will completely disappear?

How will L2 assets be integrated into the dynamic staking system? On what criteria will they be selected?

The dynamic farm seems like an excellent idea.

So, where are updates about this proposal?
Burns are STOPPED BY 6 WEEKS!!
NO ANSWER FROM ADMINS about this situation, why burns are stopped??
In the Telegram group we are asking everyday and none of you answer us about this situation!
You are pathetic.