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.
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