$TND Bonding Alpha
Dear Terrnadors,
As you know our primary goal is to develop a protocol that gives the LUNAtics’ community an option to process transactions in an anonymous way. Anonymity is, however, not the only feature Terrnado Cash has to offer!
Given the fact that our TGE will be held on the 5th of May, with this article, we would like to shed more light on the $TND tokenomics, and remind you about the perks associated with $TND bonding. Read carefully to not miss out!
Dual Token Economy: $TND and $sTND
Our dual token economic system allows users to invest in the project and earn more as it grows. In order to become a fully-fledged investor a user has to be in possession of $sTND tokens which, in turn, are obtained through the $TND bonding process.
Users holding $sTND tokens are entitled to the respective share of Terrnado Vault and can collect their part by withdrawing ownership — unbonding their stake.
There are no additional costs of both $TND bonding and unbonding. The only constraint that needs to be remembered is the fact that it takes 24 hours before the unbonded tokens and corresponding earnings can be claimed. For more in-depth information on Terrnado Vault and $TND tokenomics, we encourage you to read our recent article.
To illustrate the whole process, let’s take a look at a few short examples:
- Brian is a Terrnador who decided to buy 50 $TND tokens and bond them immediately, receiving a corresponding amount of $sTND. Before his bonding, there already were 50 $TND in Terrnado Vault. Given the fact that Brian owns 50% of the total stake, he is entitled to 50% of the whole capital. If he were to withdraw ownership, he would receive 50 $TND.
- In the above scenario withdrawing ownership would not be very beneficial to Brian, so he decided to wait. Shortly after, Terrnado Protocol facilitated a transaction amounting to 10.000 $UST which resulted in a 50 $UST fee landing in the Terrnado Vault. Brian, owning 50% of the Vault, was then entitled to 25 $UST and could earn them along with 50 $TND if he unbonded his tokens in this moment in time.
- Despite initial temptation Brian decided not to unbond again. Now Terrnado Vault consists of tokens valued at 100 $TND and 50 $UST from a fee, and Brian is entitled to 50% of the total stake. Imagine that Synthia, a new Terrnador, has just acquired 1000 $TND. As a consequence, Terrnado Vault received a fee of 1.5% — 15 $TND. Brian, is now entitled to 7.5 $TND and could earn 50 $TND + 7.5 $TND and 25$ UST if he withdrew his ownership.
- Shortly after the 1.5% transaction fee, a 20 $UST interest from Anchor Protocol kicked in. Consequently, Terrnado Vault breakdown was as follows: 115 $TND, 50 $UST plus 20 $UST. If Brian were to unbond his tokens at this point, he would receive 107.5 $TND and 35 $UST.
The examples above illustrate a scenario in which the percentage ownership stays the same. How would Brian’s exposure change if Synthia bonded her 1000 $TND tokens and held her $sTND?
Let us assume that 1 $TND = 1 $UST, and that Synthia invests right before 20 $UST interest from Anchor reaches the Terrnado Vault.
*5. Terrnado Vault consists of 115 $TND, 50 $UST (till point 3). Given our assumption (1 $TND = 1 $UST) the whole stake is worth 165 $UST. Brian, at this point, is entitled to 50% of the total stake: 57.5 $TND and 25 $UST, so 82.5 $UST.
After Synthia’s bonding of 1000 $TND Brian’s situation changes. Now Terrnado Vault consists of 115 $TND, 50 $UST, and 1000 $TND from Synthia. Total stake is therefore worth 1165 $UST.
Brian’s share constitutes now 82.51165= 7.1% of the Terrnado Vault. He is entitled to 3.5 $UST (7.1% of 50 $UST) and 79 $TND (7.1% of tokens valued at 1165 $TND). Given our assumption that 1 $TND = 1 $UST, he is still entitled to 82.5 $UST. From this moment on, his entitlement to future earnings will drop and will be based on his 7.1% ownership, unless he bonds more $TND.
As you can see in the 5th example, new $sTND holders do not generate losses to users who have already invested. However, new investors do change the structure of their potential earnings and their percentage share of future token inflows to Terrnado Vault.
We hope that thanks to the examples above, you now understand the $TND tokenomics better, and that they’ve made you more excited about the upcoming possibility of gaining profits by bonding $TNDs.
Make sure to also check the graphics explaining the process: https://drive.google.com/file/d/1fVsSR1Ypi90hxT8HOBWI8_rl5l_R9ysn/view
More $TND benefits
But, the $TND innovative token economy is only the beginning! TGE will also give rise to our Airdrop Rewarding System! As you might have already heard, we are going to recognize our active users, and award them with additional $TND tokens. Make sure to check the informational guide here.
In the meantime, check our twitter page where we are holding giveaways in celebration of the upcoming TGE. At the very moment, we are working on a special quiz testing your Terrnado Cash knowledge!
So, gather your knowledge, Terrnadors, get ready to participate in the upcoming events, and remember to… Keep it private!
