Tokenomics
$TAPP Mechanics
You receive or acquire $TAPP tokens.
You lock them for a chosen period and receive veTAPP (vote-escrowed TAPP). The longer you lock, the greater your voting power. Lock periods can be to the end of the current epoch, up to 4 years.
An epoch is a 7-day period. It starts every Thursday at 04:00 UTC and ends Thursday at 03:59 UTC. Votes, emissions, fees, and incentives are calculated for each epoch.
With veTAPP, you vote each epoch on which liquidity pools receive new token emissions.
In return, veTAPP holders earn trading fees from the previous epoch and bribes (external incentives from other protocols seeking votes) from the current epoch.
Occasionally, other protocol management measures might be presented (other than pools) to be voted on, veTapp holders voting on these governance measures will receive voter incentives in $TAPP.
This setup links the interests of liquidity providers and token holders. All emissions go to LPs, and all trading fees flow back to veTAPP holders, creating a self-reinforcing loop that encourages users to lock, vote, and stay engaged. 100% of trading fees will go to users through this mechanism.
$TAPP Tokenomics
Tapp.exchange uses two tokens to manage its utility and governance:
$TAPP — utility token of the protocol
$veTAPP — governance token in the form of an NFT (non-fungible token)
$TAPP is distributed to liquidity providers who opt-in to emissions. Liquidity providers who do not opt-in will not receive emissions and will receive pool trading fees proportional to their liquidity as a percentage of the total pool liquidity, minus 50% which will go to the pool of trading fees that go toward veTapp holders who vote.
$veTAPP is used for governance. Any $TAPP holder can vote-escrow their tokens and receive $veTAPP (also known as Lock or veNFT) in exchange. Additional $TAPP tokens can be added to the $veTAPP NFT at any time.
The lock period (also known as vote-escrowed period, hence the ve prefix) can be to the end of the current epoch, up to 4 years, following the linear relationship shown below:
100 $TAPP locked for 4 years will become 100 $veTAPP
100 $TAPP locked for 1 year will become 25 $veTAPP
The longer the vesting time, the higher the voting power (voting weight) of the underlying locked balance. As the vesting time decreases, the voting power decays.
TAPP Locks (veNFTs) can be set into Auto-Max Lock, which are treated by the protocol as being locked for the maximum duration of 4 years, and their voting power does not decay. The Auto-Max Lock feature can be turned on and off for each Lock (veNFT).
Initial Distribution
Ecosystem Airdrop
80M (78M veTAPP)
Tapp Foundation
70M (60M veTAPP, Auto Max Lock)
Development Team
30M (30M veTAPP, Auto Max Lock)
Voter Incentives
10M
Advisors
6M (6M veTAPP)
Initial Liquidity
4M
Emissions
The initial supply of $TAPP is 200M, with 176M distributed as vote-locked ($veTAPP) tokens.
Weekly emissions will begin at 130,000 $TAPP. The emission schedule will follow two phases:
Take-off: During the first 14 weeks (epochs), emissions will increase at 2% per week, allowing for rapid growth in protocol activity and partner onboarding.
Cruise: After Epoch 14, emissions will decay at 1% per epoch, ensuring total supply inflation decreases over time as the protocol matures.
Rebase
$veTAPP holders receive a rebase proportional to $TAPP emissions and to the ratio of $veTAPP to $TAPP supply, reducing vote power dilution for $veTAPP!
The weekly rebase amount is calculated with the following formula:
This rebase formula will reward $veTAPP holders most when locking rates decrease, incentivizing new lockers to step in. $veTAPP supply does not affect weekly emissions distributed to liquidity providers.
Emission Rewards
Tapp’s token distribution follows a dynamic emission cycle:
New $TAPP tokens are emitted over time as liquidity rewards proportionally to the $veTAPP voting power the pools receive. These rewards are distributed during the whole epoch and available for claiming as these accrue.
veTAPP holders determine which pools get higher emissions by voting
veTAPP holders also earn the trading fees generated by those pools and any bribes from projects seeking their votes. The result is a flywheel effect. Liquidity providers earn emissions, veTapp holders gain fees and influence, and the ecosystem grows more liquid and aligned.
For users, the strategy is simple: Provide liquidity, earn $Tapp, lock it into veTapp, and compound both rewards and voting power.
Team Emissions
While a fully autonomous and immutable protocol is an admirable objective, it comes at a cost. TAPP will ensure its long-term sustainability by employing a dedicated team focused on supporting the product decentralization, documentation, community, and ecosystem.
To cover ongoing expenses and all the upcoming development efforts, 5% of the emissions will be going to the team address.
Last updated