Revenue Governance
Learn how the community makes strategic decisions about protocol revenue distribution through burn and rebase proposals, enhanced by AI optimization for sustainability.
Shape the future of Thirdfy's tokenomics through revenue governance. The community has complete control over how protocol revenue is distributed, while our Protocol Manager Agent handles the technical optimization of revenue streams, ensuring sustainable distribution between token burns (reducing supply) and rebases (rewarding stakers).
What is Revenue Governance?
Revenue governance is the strategic decision-making process where the community votes on proposals that determine how protocol revenue is used. Unlike weekly gauge voting, these are longer-term policy decisions that shape the protocol's economic model.
Token Burns
Permanently remove TFY tokens from circulation by sending them to a dead address. Creates scarcity and deflationary pressure, making remaining tokens potentially more valuable.
Rebases
Distribute revenue directly to staked token holders as additional rewards. These enhanced yields automatically compound in your o33 balance or boost your direct xTFY staking rewards.
Community Choice: The split between burns and rebases is entirely up to you. Want more deflation? Vote for higher burns. Prefer more rewards? Vote for higher rebases. The protocol adapts to community preferences and market conditions.
How Revenue Proposals Work
The revenue governance system is designed for fairness, transparency, and automatic execution:
1. Proposal Creation
Any xTFY holder with at least 1,000 tokens can create distribution proposals. Simply choose your preferred burn and rebase percentages (must total 100%).
2. Community Discussion
All proposals are open for 4 days of community voting and discussion. This gives time for the community to evaluate and debate different approaches.
3. Voting Period
Your voting power equals your staked xTFY balance, ensuring those most invested in the protocol have the strongest voice in its economic direction.
4. Automatic Execution
Proposals receiving over 10,000 xTFY votes execute automatically. No manual intervention needed – the protocol handles everything through smart contracts.
Revenue Streams
The protocol captures value from multiple revenue streams that are automatically processed by our Protocol Manager Agent for optimal sustainability:
Current Revenue Sources
AI Service Fees & x402 Payments
Revenue from our integrated AI agents that optimize DeFi strategies and yields, including x402 payments for credits and AI services. As AI and agent adoption grows, this becomes an increasingly valuable revenue stream.
Trading Fees
Fees collected from our concentrated liquidity AMM and automated pool trading activity across the protocol.
Vault Management Fees
Revenue from our partnership with Ichi for automated liquidity management and vault strategies.
Future Revenue Expansion
Over time, revenue can expand through:
- cross-chain services
- new DeFi products
- strategic partnerships
How AI Management Helps
Thirdfy's Protocol Manager Agent can assist with revenue operations by:
- monitoring revenue streams and sustainability
- optimizing execution timing
- helping evaluate new opportunities
- enforcing risk-aware policies
Deflationary Impact
The community-controlled burn mechanism creates powerful deflationary pressure:
Permanent Supply Reduction
Each approved burn proposal permanently removes TFY tokens from circulation, reducing total supply and making remaining tokens more scarce.
Measurable Impact
Track the deflation rate - the percentage of total TFY supply permanently removed through burns, showing cumulative deflationary pressure over time.
Compounding Benefits
As revenue grows and burns continue, the deflationary effect compounds. Fewer tokens sharing growing value creates natural appreciation pressure.
Community Choice: Burns vs Rebases
The community decides how to use protocol revenue - burn tokens for scarcity or distribute as rebases for rewards. Most proposals balance both based on market conditions.
AI & Agent Economy Impact
Because a significant share of protocol revenue is generated by AI services, x402 payments, and agent-driven activity, revenue governance directly shapes the incentives and deflation profile of the agent and robotics liquidity hub. As more agents integrate with Thirdfy to access liquidity and tools, they generate additional revenue that can be burned for stronger deflation or recycled as rebases to deepen incentives for both human users and autonomous systems.
Creating Proposals
Ready to shape the protocol's economic policy? Here's how to create your own proposal:
1. Meet Requirements
You need staked xTFY tokens to create proposals (minimum amount determined by governance).
2. Design Your Proposal
Choose your preferred split between burns and rebases (must total 100%). Consider market conditions and community sentiment.
3. Submit for Voting
Submit your proposal through the governance interface and rally community support.
Participating in Revenue Governance
Join the strategic decisions that shape Thirdfy's future:
Learn More
Revenue governance works alongside other governance mechanisms:
Ready to shape the protocol's economic future? Stake your TFY tokens to earn xTFY voting power and participate in strategic governance decisions.