TDROP, the NFT Liquidity Mining token for ThetaDrop, launches on February 1st
The launch of the TDROP token is just around the corner, with distribution to Theta stakers coming on February 1st! TDROP is a new TNT-20 token natively built on Theta blockchain, that rewards NFT liquidity mining, provides decentralized governance via TDROP staking, and rewards Theta validators and guardians. TDROP is core to incentivizing more activity and volume of the ThetaDrop marketplace. Each week a new blog will detail a feature of the TDROP launch, including TDROP staking, governance, and VIP benefits on the ThetaDrop platform. If this is your first time learning about TDROP, skip down to the FAQs to learn about what TDROP is and what it means for the Theta ecosystem and existing stakeholders, or read the full whitepaper on the Theta Ecosystem.
TDROP distribution will begin as planned on February 1st. On that day, every THETA holder that staked between August 1st 2021 and January 15 2022 will receive a proportional share of the 1.33b TDROP initially distributed to stakers. From then on, each quarterly TDROP airdrop will be based on stakers’ balances for the preceding quarter. In other words, each distribution looks ONLY at the last period to determine your proportional share of the airdrop.
TDROP offers three main utilities at launch, with more to come in the future::
- VIP benefits including early access and exclusive drops on ThetaDrop
- Staking TDROP and earning a share of the TDROP stake reward pool
- Governance rights on proposals to changes to ThetaDrop (projected later Q1 2022)
Staking TDROP will be done from the Theta Web Wallet and Theta Mobile Wallet, and will not require any specific node (i.e. you do not need a Guardian Node or Edge Node to stake TDROP). Detailed instructions on how to stake your TDROP will follow in the next weeks ahead of the February 1st launch.
What is TDROP and how will it be used?
In order to increase the rate of adoption and liquidity of ThetaDrop NFT Marketplace, a new TNT-20 token, TDROP, will be created to incentivize usage through “NFT Liquidity Mining”. TDROP tokens will be earned by users each time they make a primary or secondary purchase using TFUEL on ThetaDrop NFT Marketplace or through a 3rd-party NFT Dapp built on the NFT marketplace smart contract. It can be thought of as ‘mining’ TDROP by providing liquidity to the Theta NFT Marketplace. This incentivizes early adopters of ThetaDrop to provide liquidity which enhances price discovery, improves trading volumes, and drives more user growth and adoption. ThetaDrop users who hold a balance of TDROP will earn VIP benefits including early or exclusive access to NFTs, limited edition packs, unique offline perks and more.
TDROP will also serve as the governance token for ThetaDrop and the NFT Marketplace. TDROP holders can stake their tokens to gain voting rights for proposed changes to ThetaDrop. The first TDROP vote proposal is expected to be the earning rate of TDROP for liquidity miners. As the voting process progresses and stabilizes, TDROP holders will be responsible for creating new proposals to be voted on. These community proposals will also serve as the testbed for community governance features to be implemented on the Theta blockchain itself, to be voted on by holders of the Theta token.
How will TDROP be distributed?
TDROP will have a full supply of 20,000,000,000 (twenty billion) tokens and will launch on February 1, 2022. The breakdown of TDROP token allocation is as follows:
30% — Earned by NFT Liquidity Mining on ThetaDrop platform (4-year period)
20% — TDROP staking rewards for decentralized governance (4-year period)
20% — TDROP for THETA validators and guardians including delegated stakers (18-month distribution based on average daily THETA staked balance from August 1st 2021 to February 1st 2023, with 1/3 distributed on February 1st 2022, then 1/6th distributed in each of the following four quarters, on May 1st 2022, August 1st 2022, November 1st 2022, and February 15th 2023)
20% — Theta Labs dev team (same distribution schedule as for THETA stakers)
10% — Reserve for Theta marketing, advisors, partners (distributed on February 1st 2022)
Will there be a TDROP token sale event?
No, there will not be any token sale event. If you see any offers online for a TDROP sale, be sure to report it to whichever platform you see it on as a scam/phishing attempt.
How will TDROP affect the THETA and TFUEL tokens, and how are they related?
TDROP is designed to work together with THETA and TFUEL tokens to incentivize onchain transactions volumes and blockchain security. TDROP will not overlap with or change any of the existing uses of THETA or TFUEL. THETA stakers will receive 20% of the total supply of TDrop simply for continuing to stake and run Theta nodes. Once decentralized NFT storage is implemented, Theta NFTs will be hosted on Elite Edge Nodes allowing node operators to earn 1% of any TFUEL sales of NFTs they are storing.
Why create a TNT20 TDrop token? Why not just use THETA or TFUEL?
THETA and TFUEL are protocol-level tokens to secure and power the blockchain itself, while TDROP is designed to be an application-level token for ThetaDrop, a DApp built on the Theta blockchain. THETA, TFUEL and TDROP each have different uses and different economic drivers and incentives. If THETA tokens are staked to secure Theta blockchain and TFUEL tokens are transacting between Edge Nodes for relaying and compute jobs, they can’t simultaneously be used to incentivize ThetaDrop transactions, nor staked by ThetaDrop users to vote on changes to ThetaDrop — a token can’t be in two places at one time. Rather than making the existing tokens have contradictory economic uses and confuse what the purpose of each token is, a standalone TNT-20 TDROP token can be made so that stakeholders that have use of different parts of the Theta ecosystem can use the token that specifically aligns with their usage.