TONIC Tokenomics and Airdrop
A brief overview of our plans for $TONIC, the governance token for Tectonic, and details on how it will be distributed to the Cronos community
Our Tectonic lava cores are overflowing as our Mainnet launch nears. A lot of you in the “Soon” community have been asking us “Wen $TONIC”, so this post should help to finally address that!
We are excited to announce the next milestone for the Tectonic protocol. We will be launching the $TONIC governance token in conjunction with Tectonic’s launch on Mainnet.
How to get $TONIC?
We’ve made it really simple for you to get your hands on some juicy $TONIC:
- Liquidity Mining: Earn $TONIC bonus rewards paid out per block for supplying liquidity and borrowing from the protocol — once Tectonic Mainnet goes live to the public (after Alpha period ends). More on this will be explained as we get closer to Mainnet.
- Airdrop: Through an airdrop to VVS token holders that will happen in January 2022.
You may be wondering why we have decided on the approaches above. As long-time BUIDLers and users of DeFi, we understand that at the heart of every successful and resilient protocol is a strong and passionate community.
In that spirit, we have not done any private pre-sales and have decided against doing a sale (of any kind) of $TONIC tokens at genesis. Rather, a portion of $TONIC supply will be airdropped to $VVS token holders and stakeholders. We have decided to partner with VVS Finance due to its large and growing community ever since Cronos Mainnet went live in early November. An airdrop to the VVS community is part of our intention to build goodwill with the most prominent protocol on Cronos and recognize the conviction and belief that this community have demonstrated towards Cronos so far.
Read on to find out more about the airdrop details, snapshot period, and how you can be eligible for the airdrop.
Airdrop Details
Tokens Allocated for Airdrop
Total quantity of 500,000,000,000 $TONIC will be airdropped to Cronos addresses that hold $VVS.
For further details on how the rest of the $TONIC token supply will be allocated, see “$TONIC Allocation” below.
Snapshot Date
- All users wishing to participate in the Airdrop must ensure that they have satisfied the eligibility criteria at the time of the snapshot
- The snapshot will be taken at a randomly generated timestamp after 18 January 2022 00:00 UTC (To prevent any confusion, the snapshot will only be taken at a time after the VVS IGO is completed)
- All eligible users will be able to redeem $TONIC on 14 February 2022 via the Tectonic website, follow @TectonicFi for the latest updates
Eligibility [Updated 18/1/2022]
To be eligible for the airdrop, a Cronos address must satisfy at least one of the following criteria at the time of the snapshot*:
Hold/stake at least 600,000 $VVS (up from 200,000 $VVS) across any of the following:
- Held on a Cronos public address
- Staked in any VVS Glitter Mines
- Held or staked in these VVS LP / Crystal Farms: $VVS-$CRO, $VVS-$USDC, $VVS-$USDT, $TONIC-$VVS, $SINGLE-$VVS [For LPs, you will be eligible as long as your LP value is equal to or exceeds 600,000 $VVS at the time of snapshot]
* Note: The amounts and the eligible Crystal Farms and Glitter Mines here are illustrative and may be subject to change. We will further confirm the finalized ownership requirement closer to the time of the snapshot date
Distribution Mechanism
The $TONIC airdrop will deploy the following distribution mechanics:
- Eligible $VVS token holders will receive a percentage share of the $TONIC allocated to this tranche
- This percentage share for a given user will be calculated as follows:
Total number of $VVS held by a Cronos address ÷ total number of $VVS tokens held by all eligible Cronos addresses
including VVS staked in VVS Crystal Farms or Glitter Mines
- All VVS “platform addresses” addresses set out here will be excluded from the airdrop
$TONIC Token Utility & Value Accrual
Community Insurance Staking Module (Currently under development, coming in 2022)
Aside from its governance function, $TONIC can also be utilized to secure the protocol through the Community Insurance module. This module is designed to function as a line of defense for the protocol against any shortfall events.
Users participating in this module can stake or lock their $TONIC to receive a portion of the fees generated by the protocol and some additional yield reward. By committing their $TONIC into this module, users do so knowing that their positions can potentially be slashed to allow the community to recoup losses when short-fall events occur. Examples of shortfall events are events that arise due to smart contract vulnerabilities, protocol insolvency, or oracle failure.
This design allows for long term incentives alignment between $TONIC stakers & lockers with the protocol.
Governance
Tectonic protocol will begin with centralized control of the key decisions in the protocol (e.g., interest rates, collateralization ratio, token allocation, etc.). Such decisions will be made by the Tectonic team, in consultation with the community. Over time, Tectonic aims to transition the governance process fully to community and stakeholders.
$TONIC will be used for governance of the Tectonic DAO, which will be used for community initiatives and key decisions such as changing parameters of interest rate models or protocol upgrades. Token holders will be eligible to submit proposals, vote, and delegate votes for proposals on the DAO in accordance with the governance guidelines.
For more details about the planned Community Insurance Staking Module and our plans for Tectonic’s governance, please refer to the Tectonic Litepaper.
Further $TONIC utility and value accrual will be implemented down our roadmap as we expand the features of Tectonic.
$TONIC Allocation
There will be a total fixed supply of 500,000,000,000,000 (500 Trillion) $TONIC tokens that have been minted at genesis and will become accessible over the course of 4 years.
Airdrop — 500,000,000,000 $TONIC [0.1%]
- To be airdropped to VVS token holders,
Community Incentives — 254,500,000,000,000 $TONIC [50.9%]
- To Tectonic community members as participation incentives and liquidity mining / staking rewards, including $TONIC rewards paid out on third party protocols (e.g. Farms & Mines on DEXes)
Team — 115,000,000,000,000 $TONIC [23%]
- To Tectonic’s current & future team members, vested over 4 years
Ecosystem Reserve — 65,000,000,000,000 $TONIC [13%]
- For ecosystem partner collaboration, advisors, and other community initiatives in the future
Network Security & Maintenance — 65,000,000,000,000 $TONIC [13%]
- For security audit, protocol operations, infrastructure upgrade, protocol’s liquidity, listing requirements, etc.
About Tectonic
Tectonic is a cross-chain algorithmic money market built on the Cronos blockchain. Tectonic allows users to lend and borrow assets, with corresponding interest rates that are determined algorithmically based on the supply and demand of the assets.
Tectonic is incubated by Particle B, the premiere startup accelerator dedicated to incubating projects built on Crypto.org Chain and Cronos.
You may find out more about Tectonic in the Tectonic Litepaper.
