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.

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.

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.

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