Overview
At its inception, THENA was designed with a strong emphasis on decentralizing supply ownership. Through significant airdrops to DeFi users, protocols, and early adopters, we ensured that the majority of $THE tokens were distributed across a wide base, aligning with our vision of a community-owned ecosystem. This approach successfully decentralized ownership, ensuring that THENA’s future is shaped by its most active participants.
However, with the rapid growth of THENA and the evolving DeFi landscape, it has become apparent that the initial allocation to the ecosystem fund is currently insufficient to sustain and accelerate our continued expansion. To ensure the long-term success of THENA, we propose minting an additional 25 million $THE tokens, increasing the total supply from 302.19 million to 327.19 million, to replenish and strengthen the ecosystem fund. These newly minted tokens will be crucial in supporting key initiatives that will drive liquidity, innovation, and user adoption.
Notes
- The newly minted tokens will be placed under our operational multisig.
Tokenomics Overview
- Total supply = 310M $THE (mathematical limit) - 7.81M $THE (tokens burnt) = 302.19M $THE
- $THE initial supply distributed to users, builders and early adopters: 53% (26.5M $THE)
- 25% (12.5M $THE) of the initial supply was distributed to users across a wide selection (20+) of DEFI and web3 based protocols across various chains.
- 19% (9.5M $THE) of the initial supply was airdropped to protocols engaging with our liquidity layer.
- 9% (4.5M $THE) of the initial supply was allocated to NFT minters, 40% of which is locked for 2 years as veTHE.
- 25% (12.5M $THE) of the initial supply was allocated to the ecosystem fund.
- Current Circulating Supply: 53M $THE
- Revenue Generated Since Inception to veTHE Holders: $23.7M
- Percentage of maximum supply Minted: 65%
- $THE Locking Rate: 76%
- Average Locking Duration: 1.77 years
Breakdown of the Annual Inflation Over the First Five Years of THENA:
| Year | Inflation Rate |
|---|---|
| Year 1 | 194% |
| Year 2 | 41% |
| Year 3 | 17% |
| Year 4 | 8.6% |
| Year 5 | 4.7% |
In contrast, the ecosystem fund was deliberately kept minimal to ensure that the community held a significant stake in the protocol’s future. This conservative approach has served us well in the short term, fostering decentralization and active participation. However, the rapidly expanding opportunities and THENA’s growing ecosystem demand a reassessment of the initial allocation.
With THENA’s circulating supply now at 65%, and 76% being locked for an average of 1.78 years, the initial distribution objectives have been successfully achieved. As we look ahead, it is critical that we enhance the ecosystem fund to support key initiatives that will enable THENA to scale and continue delivering value to all participants.
Purpose of the Additional Minting
The primary goal of minting an additional 25 million $THE tokens is to strengthen the ecosystem fund, ensuring that THENA has the resources to meet its ambitious growth objectives. This fund will be used to support a wide range of initiatives, including:
1. Grant Fund to Attract Builders
To encourage innovation within the THENA ecosystem, we will allocate a portion of the ecosystem fund to a grant program. This will incentivize developers and teams to build on top of THENA, creating new products and integrations that enhance our platform’s utility and expand our reach. By attracting builders, we can foster a vibrant ecosystem of dApps, financial tools, and services, driving long-term growth.
2. veTHE Allocation for Future Team Members
As we aim to accelerate our growth, we’ve been hiring strategically for the past six months and will continue doing so in the upcoming months. Onboarding key profiles to support our execution requires long-term incentives to give skin in the game to our future recruits.
3. Marketing and Global Expansion
Expanding our presence in key markets is essential for onboarding new users and increasing adoption. The newly minted tokens will support strategic marketing campaigns aimed at raising awareness of THENA, including partnerships with renowned actors, targeted advertising, and participation in industry events. Additionally, we will explore sponsorship opportunities to position THENA as a leader in the DeFi space.
4. Strategic Exchange Listings
Securing listings on prominent exchanges is crucial for enhancing liquidity and accessibility of $THE tokens. The additional resources will enable us to pursue opportunities with top-tier exchanges, expanding our reach to a broader audience and facilitating easier access for new users. Being listed on major platforms will significantly boost our visibility and credibility in the global market.
5. Market Making (DEX and CEX)
A key area where additional resources are required is in market making, both within our DEX and on potential centralized exchange listings. By providing liquidity and minimizing slippage, we will enhance the trading experience for users, ensuring that THENA remains competitive on multiple trading avenues, maintaining price parity, low spreads, and overall optimal trading conditions.
6. Community Engagement and Governance Participation
A portion of the additional tokens will be allocated to community-driven initiatives that foster greater engagement and governance participation. This includes rewarding active participants who lock their tokens, vote on governance proposals, or contribute to the long-term sustainability of the ecosystem. Empowering our community remains at the heart of THENA’s success, and these initiatives will continue to align with that vision.
Justification for Minting Additional Tokens
1. Initial Focus on Decentralization
Our launch strategy was designed with a clear focus on decentralizing ownership. This has been achieved, with a significant portion of the supply distributed via airdrops to users and protocols. However, the minimal allocation to the ecosystem fund has limited our ability to fully capitalize on emerging opportunities.
2. Seizing Strategic Opportunities
The DeFi landscape is dynamic, with fleeting windows to capitalize on significant advancements. Enhancing our ecosystem fund positions us to act swiftly on strategic initiatives, such as securing listings on leading exchanges, which can exponentially increase our user base and adoption rate.
3. Scaling the Ecosystem Fund for Growth
As THENA grows, the ecosystem fund must expand to meet the increasing competition for liquidity, innovative builders, and user acquisition. Without additional resources, we risk missing key opportunities to cement THENA as a leader in the DeFi space. The proposed minting will ensure that we have the necessary capital to support growth without compromising on decentralization principles.
4. Liquidity and Market Efficiency
Enhanced liquidity for $THE, both on THENA’s DEX and potential centralized exchange listings, will attract more traders, reduce spreads, and open up new channels for user acquisition. Improved liquidity conditions are essential for providing a seamless trading experience, which is vital for retaining users and encouraging higher trading volumes.
Mint Technical Overview
Key Entities
• THENA Multisig: 0x7d70ee3774325C51e021Af1f7987C214d2CAA184
• Proxy Admin: 0x8b9cA04656A74E218ECbD444c493872d19533E06
• Timelock: 0x5D7DEb17be6c6243d6D65205b5293EdCeB676561
• Minter: 0x86069FEb223EE303085a1A505892c9D4BdBEE996
Steps
-
Deploy New Minter Contract
Deploy the new implementation of the Minter contract. This implementation will grant THENA Multisig the ability to mint 25 million tokens. This minting capability can only be exercised once. -
Queue the Upgrade Transaction
THENA Multisig queues the transaction to upgrade the Minter contract through the Timelock contract, which is the owner of the Proxy Admin.
-
Method:
Timelock::queueTransaction() -
Inputs:
-
Target:
ProxyAdmin -
Value:
0 -
Signature:
upgrade(address,address) -
Data:
abi.encode(Minter, Minter_NewImplementation) -
ETA:
block.timestamp + 12 hours
-
-
Wait for 12-Hour Delay
Allow the 12-hour delay to elapse as specified in the Timelock. -
Execute the Upgrade Transaction
THENA Multisig executes the previously queued transaction to implement the new Minter contract.
-
Method:
Timelock::executeTransaction() -
Inputs:
-
Target:
ProxyAdmin -
Value:
0 -
Signature:
upgrade(address,address) -
Data:
abi.encode(Minter, Minter_NewImplementation) -
ETA: Same timestamp as when the transaction was queued
-
- Mint $THE Tokens
Following the upgrade, THENA Multisig will have the authority to invoke the mint() function in the newly deployed Minter contract to mint $THE tokens. This minting operation is limited to a one-time issuance of 25 million tokens.
Upon approval, the 25 million additional tokens will be minted and allocated specifically for the outlined initiatives. The funds will be managed transparently, with regular updates provided to the community on how the tokens are being utilized.
Conclusion
Minting an additional 25 million $THE tokens is a strategic move that will enable THENA to seize new opportunities, strengthen its ecosystem, and continue delivering value to its community. With a renewed focus on strategic exchange listings, market making, developer grants, community engagement, and liquidity incentives, THENA is well-positioned to lead the DeFi space into its next phase of growth. This proposal ensures that our ecosystem remains competitive, innovative, and aligned with the long-term vision of decentralization and user empowerment.
Thank you for your continued support.
