Unpacking Terp Network — Initial Token Distribution & Economic Model
In this article, we bring you up to speed about the release of our tokenomics, and updates about the upcoming airdrop of TERP & THIOL.
Terp Network
Terp Network is initially a permissioned, decentralized CosmosSDK blockchain evolving systems like Metrc & provides a verifiable, transparent protocol to manage transactions within the cannabis culture. Initially permissioned is the keyword here because governance will keep features aligned with consensus of the community, including whether or not Terp Network will always be a permissioned network.
Why Terp Network?
There are a few main reasons why we chose contributing to a decentralized protocol as our strategy:
- Sovereignty
- Interoperability
- Decentralized & hyperfocused
- Sovereignty
With the launch of Terp Network, we will be independent of other ecosystems. This sovereignty does not sacrafice interoperability, as relayer nodes can connect Terp Network to interchain ecosystem and builders on Terp Network can leverage the tools available from other blockchains, including Ethereum, Bitcoin, Secret Network, Juno, Akash Network & dozens other.
Token Distribution & Airdrop
As a truly decentralized community with no VC funds & no private investors, initial Tokenomics were developed that align with our intentions to utilize progressive decentralization methods.
Initially, over 165,000 unique wallet address own TERP & PERSY. These are
- Cosmos Hub Stakers
- Bitcanna Stakers
- Terp OGs
- Scavenger Hunt Participants
- TerpNET Foundation DAO
Supply & Tokenomics
With 420 million terp & 420 million persy tokens initally in circulation, you can understand the distribution ratios better with this chart:
Vesting
All TERP tokens, excluding 50% of the Foundation DAO, a few initial validators delegations are subject to a vesting period initially. This vesting period will last about 6 months, with a current un-vesting time set for Oct 20th, 2023. 50% of the Foundation DAO’s Terp Tokens are vesting & non-transferrable for 7 years. No THIOL’s are subject to vesting times.
Tokenomics & Value Accrual
The base fixed inflation rate of 93% for THIOL tokens is set to incentivize validators & delegators for securing the network.
THIOL being the gas token & TERP being the governance token, there are several value accrual mechanisms that arise:
- TERP stakers are rewarded a base APR from delegating to Terp Network.
- Applications building on Terp Network can generate fees for their use.
- Interchain opportunities extend TERP & PERSY utility to the limits of the interoperable ecosystem of The Cosmos.
Future Goals
Second Airdrop Cycle
Often stoners show up late to the party, but also often stoners are among the first to adopt technological innovations. This is why we want to show respect to the individuals within the web-3 communities that suppport the movement of web-3 & cannabis culture infusion.
A governance proposal to include token holders of various web-3 & cannabis focused projects is being formed by the TerpNET Foundation DAO. We want to hear what communities you want to see included in this second Airdrop, join our Discord!
Cheers!
