Tokenomics
Explore TFY's deflationary tokenomics with limited initial circulation and sustainable emission controls.
Thirdfy's o(3,3) protocol launches with a carefully structured token distribution—only 50M TFY enters initial circulation from a 500M total supply. Built on Base with multiple deflationary mechanisms including exit penalties and 90% of initial tokens locked in xTFY, the protocol ensures sustainable growth through controlled supply expansion.
Emissions
Initial Supply
500M TFY
Asymptotic Growth
TFY emissions follow a smooth decay curve over approximately 500 epochs (~10 years), with ~1.2B TFY distributed before weekly emissions fade to near zero. This controlled release ensures long-term sustainability while maintaining adequate rewards for ecosystem participants.
Weekly Emissions
2.88M TFY distributed per epoch (0.192% of total supply), with elastic adjustments of ±25% based on protocol revenue performance to maintain optimal economic balance.
Emission Control
xTFY voters direct all emissions to gauges each week.
Emissions are the new TFY tokens that Thirdfy generates to reward active participants. These tokens are distributed weekly to various pools based on xTFY holder votes, creating ongoing incentives for liquidity providers and stakers in the ecosystem.
Launch Allocations
TFY Initial Distribution
Initial supply allocation of 500M TFY tokens
| Holder | Amount | % of Initial | Token Type |
|---|---|---|---|
| Treasury | 175M TFY | 35% | xTFY |
| Ecosystem Growth | 105M TFY | 21% | xTFY |
| Foundation | 95M TFY | 19% | xTFY |
| Core Team | 75M TFY | 15% | xTFY |
| Liquidity | 50M TFY | 10% | TFY |
Only 50M TFY enters circulation immediately, with remaining tokens allocated as locked xTFY to ensure controlled distribution and sustainable growth.
Three-Token System
TFY
The base ecosystem token. Trade it, provide liquidity, or convert it 1:1 into xTFY.
xTFY
The governance and reward token, obtained by converting TFY (1:1). Must be staked to unlock voting power and earn rebase rewards (protocol revenue + exit penalties). Exit back to TFY via a 180-day vest or instantly with a 50% penalty (distributed to stakers).
o33
A liquid staking token minted from xTFY. Offers passive, auto-compounding rewards (emissions + fees) by increasing the o33:xTFY ratio over time. The protocol automatically votes and manages rewards for o33 holders.
Exit penalties are redistributed to active stakers, creating aligned incentives and sustainable reward distribution.
Revenue-Based Deflationary Model
Beyond exit penalties, the protocol features a powerful community-controlled deflationary mechanism through revenue governance. All protocol revenue streams are subject to community voting on allocation between token burns (permanent supply reduction) and rebases (rewards distribution).
Revenue Sources Subject to Community Burns:
- Protocol Trading Fees - Fees from concentrated liquidity AMM and automated pool trading
- AI Services Fees - Revenue from integrated AI agents optimizing DeFi strategies
- Vault Management Fees - Revenue from automated liquidity management partnerships
- Future Revenue Streams - Cross-chain services, new DeFi products, and strategic partnerships
Token holders vote on proposals to determine what percentage of this revenue permanently burns TFY tokens versus distributing as enhanced staking rewards. This creates flexible deflationary pressure that adapts to market conditions and community preferences, with the potential for significant supply reduction as protocol revenue grows.
Elastic Emissions
Emissions adjust ±25% per epoch based on protocol revenue performance, maintaining optimal inflation control:
Emissions Up
When revenue matches or beats emissions for several epochs, the system increases emissions to reward growth.
Emissions Down
When revenue lags far behind for multiple epochs, the system reduces emissions to maintain sustainability.
All emissions are directed to gauges through community governance. Parameters may be adjusted to maintain protocol sustainability and optimal economic balance.
Built for Balance
TFY's controlled supply expansion and elastic emissions create sustainable value accrual. The three-token system (TFY, xTFY, o33) provides flexible participation options while maintaining long-term protocol alignment through Thirdfy's proven o(3,3) mechanics.
Combined with community-driven burn mechanisms through revenue governance, the protocol maintains multiple deflationary pressures while ensuring adequate rewards for participants. The smart contract includes a technical maximum of 1.5B TFY tokens, though deflationary mechanisms and emission decay make this theoretical limit practically unreachable.