Revenue Governance

Learn how the community makes strategic decisions about protocol revenue distribution through burn and rebase proposals, shaping Thirdfy's economic model.

Shape the future of Thirdfy's tokenomics through revenue governance. The community has complete control over how protocol revenue is distributed, deciding the optimal balance 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.

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 Sources

The protocol captures value from multiple innovative revenue streams that feed into the governance system:

Current Revenue Sources

AI Service Fees

Revenue from our integrated AI agents that optimize DeFi strategies and yields. As AI 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

Cross-Chain Services

Expanding services across multiple blockchains, capturing fees from a broader DeFi ecosystem as the protocol grows.

New DeFi Products

Additional financial instruments and strategies that will generate new protocol revenue streams over time.

Strategic Partnerships

Collaborations with other protocols to create mutually beneficial revenue-sharing arrangements.

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.

Strategic Considerations

When participating in revenue governance, consider these factors:

Bear Market Strategy

During downturns, higher burn rates can create scarcity and support token value through reduced supply.

Bull Market Strategy

During growth periods, higher rebase rates can maximize rewards for loyal stakers while the protocol revenue is strong.

Balanced Approach

Many proposals balance both mechanisms, providing steady deflation while rewarding active participants.

Creating Proposals

Ready to shape the protocol's economic policy? Here's how to create your own proposal:

1. Meet Requirements

You need at least 1,000 staked xTFY tokens to create proposals.

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:

Vote on Proposals

Review active proposals and cast your vote based on your vision for the protocol's economic direction.

Track Impact

Monitor proposal outcomes, deflation metrics, and the long-term impact of community governance decisions.

Key Features of the Model

TFY Protocol's revenue governance system provides flexible community control over economic policy:

Community-Driven Economics

Token holders vote on revenue distribution between burns and rebases, allowing the economic model to adapt to market conditions and community preferences.

Stakeholder Alignment

Decisions are made by active participants in the protocol, ensuring governance choices reflect the interests of actual users and stakers.

Adaptive Framework

The protocol can adjust its economic policy through regular governance votes, responding to changing market conditions and revenue opportunities.

Learn More

Revenue governance works alongside other governance mechanisms:

Gauge Voting

While revenue governance handles strategic economic policy, gauge voting manages weekly emissions direction. Learn about the operational side of governance.


Ready to shape the protocol's economic future? Stake your TFY tokens to earn xTFY voting power and participate in strategic governance decisions.