TrueFi’s TRU Token Economics

Distribution & Supply Plans for TRU as of Feb 2021

Essential Figures:

Max supply: 1.44bn

Current circulating supply (as of 1/3/22): 555,897,218

Token allocations:

1. Incentives (yield farming) = 565,500,000 (39%)
2. Pre-Sale = 387,917,402 (26.75%)
3. Team = 268,250,000 (18.5%)
4. Company/Foundation = 163,082,598 (11.25%)
5. Future Team = 65,250,000 (4.5%)

Since launch, TrueFi’s token release schedule has been updated several times by TRU community votes to reflect updated opportunities. As a result, the actual circulating supply and distribution curve is now different than when it was originally proposed.

The information below aims to be comprehensive in explaining the differences between the projected and actual distribution, give context to each source of distribution, and provide intentions for how the distribution could change over time.

Max & Circulating TRU Supply

At launch, the total max supply of TRU was 1,450,000,000.

TrustToken, Inc has been actively burning tokens as a result of providing liquidity to the TRU farms and as of February 2, 2021, has burned 5,253,710.89 TRU tokens, decreasing the total max supply of TRU to 1,444,746,288. Etherscan has been pulling the total max supply number accurately so that can always be used as the source of truth.

While the total max supply is ~1.44bn, the circulating supply is much lower.

As of February 22, 2021 it’s about 224mm TRU. The actual current circulating supply is also much lower than originally anticipated, as a result of certain votes to reduce incentive distributions. Per the originally proposed distribution schedule, the circulating supply (TRU available to be exchanged freely) on February 22, 2021, would have been ~400mm TRU — instead it is about 224mm TRU.

In addition to the current circulating supply being much lower than originally anticipated, there are at least 10s of millions and upwards of 100s of millions of unallocated TRU that could be repurposed or burned and will be covered in more detail below.

To calculate the circulating supply for each of these is relatively easy:

Core Team

Of the 268,250,000 total team tokens, 65,875,000 are circulating. The remaining 202,375,000 unlock quarterly over the next two years. A portion of the team tokens were distributed as token awards and a portion as token options.

On each of the dates below ⅛ of 268,500,000 (approx 33,562,500) should enter the circulating supply, assuming the portion of token options are fully exercised.

The eight unlock dates are

• [COMPLETED] November 21, 2020,
• [COMPLETED] February 19, 2021,
• [COMPLETED] May 20, 2021,
• [COMPLETED] August 18, 2021,
• [COMPLETED] November 16, 2021,
• [COMPLETED] February 14, 2022,
• [COMPLETED] May 15, 2022,
• August 13, 2022.

The locked tokens are held at:

0xFc293b1065f627EDFb600663652D42cd7A397029

0xe387606dd76F6f502CB9eF4d79dCAb89eD04fCb2

Any time tokens leave one of these addresses, they will be added to the circulating supply.

* The current # of circulating tokens is actually slightly less than ⅛ of the total amount. That is because some teammates have not yet provided their address to receive their tokens.

Future Team

The future team has 65,250,000 reserved for them at:

0x94E7B4c70E12Abb2516773F2F06471a3031C94A7

Any time tokens leave this address means they are entering the circulating supply. New teammates will be subject to a new vesting schedule and may receive their tokens as token options. Right now, 181,254 have left this wallet and have been distributed to teammates who were hired after TrueFi launched.

Editor’s Note: Per ongoing discussions inside TrustToken, Inc. and on forum.truefi.io, we believe that we may have over allocated to this category.

Whether the right # of ‘Future Team’ tokens is actually 65,250,000 or (more likely) something closer to 20mm-30mm TRU tokens is undetermined. There’s a good chance that the excess tokens could be burned, given to a community treasury, or otherwise re-allocated.

Incentives Distribution

The “Incentive Distribution” bucket has the most nuance and has changed the most over time. To start, the following allocations of TRU were made:

BAL/TRU/DAI Pool

11,310,000 TRU were allocated at 0x4A90472cD446A1686FB6d7e86aCE50AF03e71073

UNI ETH/TRU

62,205,000 TRU were allocated at 0x8EFF7d12118Fd599772D6448CDAd11D5fb2568e0

UNI TUSD LP

39,585,000 TRU were allocated at 0xCc527F4f8c76dB1EBA217d001cCc6f8bD9e0D86E

TrueFi LP

195,097,500 TRU were allocated at 0xfB8d918428373f766B352564b70d1DcC1e3b6383

TRU Voters

254,475,000 TRU were allocated at 0x440ed3e4b10b12fA2bab441a3c44B9550BA9Df32

NXM

2,827,500 TRU were allocated at 0x11ea30008fAC1D2a0bB880c1e01421aaC111c0B7

To find the circulating supply we want to look at the TRU balance in each of the Etherscan links above and subtract the # of TRU remaining in that wallet from the number in column 2.

For example, the circulating supply corresponding to the BAL/TRU pool is:

11,310,000 — 8,912,512.57 = 2,397,487.43 TRU

Changes to the Incentive Distribution

Per the original token distribution plan, the six incentive sources should have been distributing about 1.6mm TRU tokens/day. The actual average distribution per day between launch and Feb 1 has been closer to 86,000 TRU/day. This change happened as a result of several discussions and polls on forum.truefi.io including:

1. November 25, 2020 post “Investors Forgotten via Token Economics”
2. November 25, 2020 post “Poll: Proposal for Reducing TRU Emission Rate”
3. December 4, 2020 Post “Further Reduction of TRU Farming — Feedback Wanted” & this was clarified on December 8 and decided on December 9
4. On January 2, 2021, a Snapshot vote was approved that would change the rewards for stakers from 1x to 2x (yes, the poll does say 2.5x, but because the smart contracts currently only support integers for this value, it’s 2x).
5. Another proposal was approved by TRU holders to turn off ETH/TRU Uniswap incentives and shift them to Sushiswap, while also decreasing the size of that farm to 20% of Uniswap’s current amount.
6. February 12, 2021 post [Proposal] Increase TRU Staking Rewards

There are few additional things to note about this bucket:

Changes: Incentive distributions will continually be subject to change via governance.

Unallocated TRU: Because the actual distributions are so much lower than originally proposed, it begs a question of what to do with the unallocated TRU. For example:

1. 11,310,000 TRU was allocated towards a Balancer pool, but because it was quickly realized that the Balancer pool was providing little benefit to TrueFi, it was turned off within 10 days, leaving 8,912,513 TRU unallocated.
2. 2,827,500 TRU was allocated towards Nexus Mutual, but only 1,600,000 TRU was actually distributed, leaving 1,227,500 of excess TRU.
3. Those two pools are easy to see because the incentives were definitively ended, but take a look at Uniswap ETH/TRU (which may become Sushiswap ETH/TRU pool). That pool had 62,205,000 TRU allocated towards it and was supposed to only last for 120 days. With the updated farming models, the community will have certain choices to make. For example: at the 120 day mark (March 20, 2021) when <10mm/62mm tokens are distributed, the community could vote to extend that pool or end it entirely. If the community decides to end it, what should happen to the outstanding 52mm tokens?

Company

The company has a total of 163,082,598 tokens:

• Unlocked now: 54,360,866.00
• Unlocking Nov 2021: 54,360,866 at 0x5b485df8f00080D515bE666543b40904fbf9a3Fd
• Unlocking Nov 2022: 54,360,866 at 0xB291FbC677839d5b56a15cF0629300222676D57E

We are very early on in the journey of building the TrueFi protocol. We believe that having the resources to ride out short-term fluctuations and make investments that may be costly up front will ultimately make a stronger ecosystem.

As a first step on this journey, we’re announcing that we’ll contribute 10% of our company tokens from Unlock 1 into a pool specifically to create a SAFU-like/insurance fund/system backstop, one designed to incentives more lenders. It’s still TBD the structure that this will take and we’ll be engaging the community for proposals of how this could ultimately be self-sustaining.

We will also contribute a further 10% from Unlock 1 into a fund that will be community governed, to fund other ideas that the community approves. Of the tokens the company has unlocked so far, we’ve also committed ~35% of those towards market makers and AMMs so that TRU has strong liquidity.

To summarize: the company is committing to give away >10mm TRU which will go to the SAFU and the community fund.

This is in addition to the >5mm TRU that the company has permanently burned.

Up to this point with our unlocked tokens, TrustToken, Inc. has used them only to improve TrueFi and TRU. Below are some examples of how the company has used the tokens:

• Provided liquidity on Uniswap;
• Loans to market makers to provide liquidity on centralized exchanges;
• Used to fund marketing campaigns such as trading competitions, hold-to-earn incentives and AMAs; and
• Voted/Staked on loans that otherwise would not have met the minimum requirements.

The bulk of these tokens are held at:

0x62cB1071882E70AE9C608053C1b69469302A1890

Over the course of the next couple of years, as the company tokens unlock, we expect to work closely with the community to find more ways to invest in the long-term success of the protocol.

Pre-Sale

In our pre-sale, a total of 387,917,402 tokens were purchased. All of these tokens are subject to the same 2-year quarterly unlock schedule that the team tokens are subject to.

The eight unlock dates are:

• [COMPLETED] November 21, 2020,
• [COMPLETED] February 19, 2021,
• [COMPLETED] May 20, 2021,
• [COMPLETED] August 18, 2021,
• [COMPLETED] November 16, 2021,
• [COMPLETED] February 14, 2022,
• [COMPLETED] May 15, 2022,
• August 13, 2022.

However, as of today (February 3, 2021), only ~72% of the tokens (locked and unlocked) have been claimed and distributed to purchaser wallet addresses.

This means ~110mm tokens are still held by the company and have not been claimed by the individuals and entities who purchased them. You can find the unclaimed tokens here: 0x8b9cA4469C49ee4506b04315FFB6b21349052d67

To calculate the true circulating supply attributable to the token pre-sale (the amount that can be exchanged) you should take 387,917,402 minus the amount held in 0x8b9cA4469C49ee4506b04315FFB6b21349052d67 2/8 (or 3/8 if we’re past May 20, 2021, etc.).