In preparation for our upcoming ILO let’s have a quick overview of Tsunami Tokenomics.
Tsunami is governed by a platform token, TSN. TSN provides its holders an ability to participate in making platform development decisions, including adding new markets and prioritizing features. Another important property of TSN is staking. Stakers of TSN participate in platform earnings distribution.
TSN follows a non-inflationary token model, where an initial supply of TSN tokens are $TSN 1,000,000 and new tokens can not be issued.
TSN tokens are distributed in the following way:
Initial liquidity is supplied to Puzzle Swap with an initial token price of $0.2 per token, giving Tsunami a very conservative initial estimate of $200,000.
Tsunami incurs a flat 1% fee on opening of each position on the platform. Half of the fee goes to an insurance fund that helps to stabilize a protocol and close underwater positions. Another half distributes to TSN stakers as a reward.
Assuming half of ILO supplied tokens are sold (325000 TSN), that makes TSN price on exchange $0.95. Assuming 75% of the tokens are staked, that makes 245000 TSN staked, with a total staked value of 245000 * $0.95 = $232750
Let’s assume a daily trading volume of $500000. Half of it is opening new or increasing positions, that actually incurs a fee. That means, 250000 * 0.01 / 2 of fees distributed to stakers, or $1250 daily. That gets stakers 1250 * 365 in rewards over a year, in addition to their staked value, that gets us (232750 + 1250 * 365) / 232750 = 295% APY
Note, that this number is approximate and under many assumptions, however this shows how rewards are accumulated in Tsunami. An additional income source of Tsunami is staking off all the USDN used as collateral and in an insurance fund in Neutrino staking. Currently, Neutrino staking is not quite profitable (0.05% APY), but in the future with Waves price rising, it can return to 5-15%, providing additional substantial source for protocol yield.
We are also very open to using other protocols to stake our USDN collateral and provide additional yield.
Unlike most token projects whose value is built only on the expectation of further growth in the future or ponzinomics, our product starts generating profits for all TSN token holders from day one. What if top cryptocurrency exchanges like FTX and Coinbase directed half of their earnings commissions to payments to their token holders? And the accrual happened every hour? And the transparency of the conditions of collection and distribution of commissions was determined by a smart contract?
Tsunami is using all advantages of Waves platform, such as - fast transactions, low commissions and well-functioning bridges with other blockchain, implements one of the most demanded instruments in the crypto market - derivatives market, based on virtual AMM, that allows trading any asset - Crypto, NFT’s, Commodities (Oil, Gas, e.t.c) with leverage.
Choosing the ILO as a token distribution mechanism, guarantees equal entry for all market participants and fair token pricing. While not taking the option to attract financing from funds, we exclude the emergence of a large token holder who could manipulate the price in the future. And the development and market demand for the product we create will allow us to assess the work of our team and provide a commensurate reward for the efforts invested.
Read more on ILO process in our previous article: