ARK Initiative: Protocol Economics Restructuring Discussion
THENA is entering a new chapter.
The DeFi market is evolving rapidly. Trading activity and user attention are increasingly moving toward platforms capable of building competitive markets, delivering new products and continuously reinvesting in growth.
To compete in this environment, THENA must strengthen its economic foundation, improve market efficiency and create new sources of protocol revenue.
With this in mind, we would like to introduce the ARK Initiative for community discussion — a transitional economic and growth framework designed to prepare THENA for its next stage.
The initiative will focus on three priorities:
- Building a more sustainable protocol economy;
- Creating resources for product and ecosystem development;
- Developing new revenue engines around RWA Perpetuals and related trading products.
A Sustainable Foundation for Growth
As the first stage of the ARK Initiative, we propose an integrated update to THENA’s Spot Trading Fee Distribution, Emissions Allocation and Protocol Resource Framework.
Proposed Spot Trading Fee Distribution
Spot trading fees would be distributed as follows:
- 40% to veTHE voters
- 60% to the Protocol Treasury under Foundation oversight
- No direct spot trading fee allocation to theNFT under the initial structure.
Proposed Emissions Allocation
Emissions would be allocated as follows:
- 77.5% for LP incentives (increase from 67.5%)
- 15% for the veTHE rebase (decrease from 30%)
- 2.5% for the Developer Wallet
- 5% for the Protocol Treasury
The proposed structure is intended to further strengthen LP incentives while creating a more sustainable resource base for product development, liquidity growth and new business expansion.
Protocol Treasury
The Protocol Treasury would be managed under Foundation oversight and deployed according to the evolving needs of the ecosystem.
Potential uses may include product development, security, ecosystem campaigns, TVL and market incentives, marketing, partnerships and potential protocol-led value-accrual initiatives.
Allocation across these areas would be determined according to protocol performance, market conditions and long-term strategic priorities.
Under this framework, the Foundation may also introduce selected liquidity and market incentive programs to support TVL, trading activity and broader ecosystem participation.
The Future Role of theNFT
The role of theNFT will continue to be evaluated as the THENA ecosystem and product scope expand.
Future opportunities may include ecosystem distributions, participation in selected new-product revenue structures, or other value-accrual mechanisms connected to THENA’s RWA and trading ecosystem.
The proposed adjustment therefore does not remove theNFT from THENA’s future economic framework. Instead, it provides room to evaluate more sustainable participation mechanisms as new revenue streams develop.
Building THENA’s Next Revenue Engine
Protocol resources may also support THENA’s expansion into RWA Perpetuals and next-generation on-chain trading products.
This work may include trading infrastructure and integrations, RWA market development and asset onboarding, risk management, security, trader acquisition and ecosystem partnerships.
These new business lines are intended to expand THENA beyond its existing spot revenue base, increase trading activity and build a more diversified source of protocol revenue.
As sustainable new revenue develops, the Foundation will continue evaluating how it can strengthen veTHE, theNFT and the broader THENA ecosystem.
Update on the Previously Discussed THE Issuance
During the development of this framework, the Foundation evaluated a potential additional 10% issuance of THE as one possible way to support the transition.
Following further review, we concluded that additional issuance could create unnecessary dilution and negatively affect long-term community alignment.
The Foundation has therefore decided not to proceed with the plan at this stage.
No tokens have been minted under this proposal, and the ARK Initiative will not introduce this additional supply.
Instead, THENA would move forward through the economic adjustments proposed above, existing protocol resources, partnerships and operational execution.
Next Steps
This Forum post is intended to collect feedback from veTHE holders, theNFT holders, liquidity providers and the broader THENA community before a formal governance proposal is submitted.
Following the discussion period, the proposed Fee Distribution and Emissions Allocation changes will be submitted to veTHE governance for a formal vote.
The ARK Initiative is designed to preserve THENA’s core while restoring the protocol’s ability to continuously invest in liquidity, products and growth and build new sources of sustainable revenue.
We welcome feedback from THE community.