Understanding $TLX
The TLX governance token
Last updated
The TLX governance token
Last updated
$TLX is the native governance token of the TLX protocol.
The total supply of 100 million $TLX tokens is distributed as follows:
In line with TIP 12, 30 million $TLX from the bonding supply has been burned (transaction), reducing the total supply to 70 million. The remaining unused bonding supply of 4.56 million $TLX was transferred to the treasury.
The team, investor, company reserve, and DAO treasury shares are all subject to a 1 year linear vesting period. Figure 4 illustrates the total emission schedule over four years following the TGE:
Genesis locking $TLX equips lockers with the right to participate in protocol governance.
Besides governance rights, genesis lockers receive liquid $TLX rewards during the initial 26 weeks after the token launch. The rewards will accrue linearly on a per-block basis and can be claimed by lockers at any time.
The lock period is 26 weeks, i.e., $TLX can be unlocked 26 weeks after locking it. Once unlocked, the tokens are migrated from the locker contract to the staker contract, whereby the user receives $stTLX in return. To convert $stTLX back to $TLX, the user needs to initiate the unstaking period of 5 days and subsequently unstake $stTLX for $TLX, as outlined in the staking section.
If a user locks more $TLX, after having previously locked an amount, the lock period resets to 26 weeks for all locked $TLX of that user.
Staking $TLX for $stTLX equips holders with the right to participate in protocol governance.
Unstaking $stTLX is subject to a 5-day unstaking period, i.e., once unstaking is initiated, it requires 5 days until $TLX tokens can be withdrawn.
A user can always stake more $TLX, irrespective of whether an unstaking period has been initiated, and can also initiate unstaking for partial amounts of $stTLX.
Since implementing TIP 1, $stTLX holders can claim protocol fees. Fee participation will be halted during the unstaking period. For more details on protocol fees, please refer to the Fees section.
A total of 10% of the $TLX supply is reserved to incentivize liquidity on AMMs. At first, this will be the $TLX/ETH pool on Velodrome. In every epoch, $veVELO holders can receive $TLX by voting on the $TLX/ETH pool to receive an amount of $VELO inflation. For more details on incentives for Velodrome, please refer to the Velodrome docs.
The amount of $TLX allocated as incentives per voting epoch on Velodrome follows the same inflation curve as the inflation allocated to the $TLX bonding. The inflation decays every 20 days by 2.8%.
