$TAROT is a fixed-supply ERC-20 token for the Tarot Protocol. The tokenomics, which include a 4-year farming rewards program, will promote the growth of the protocol for years to come.
The total supply of $TAROT is 100,000,000. These tokens, and their vesting periods, are allocated as follows:
- Farming Rewards: 59,000,000 over 4 years
- Protocol Growth: 19,000,000 over 4 years
- Core Team: 13,300,000 over 4 years
- LGE Participants: 3,200,000 over 1 year
- Early Tarot Users: 3,000,000 over 1 year
- Initial Liquidity: 2,500,000
Tarot allocates 59% of the total supply of $TAROT to farming rewards over 4 years. The emission schedule will distribute $TAROT to users who borrow tokens or use leverage in farming-enabled lending pools. Approximately 3% of the total supply of $TAROT will be distributed as farming rewards in the first month of emission, and approximately 30% of the total supply after one year.
Farming serves to reward users who actively participate in the Tarot Protocol. A well-executed farming rewards program results in a fair distribution and governance over the protocol, which is essential to the long-term success of the Tarot Protocol. The ability to farm $TAROT by borrowing and leveraging LP tokens serves to attract borrowers to Tarot.
This design helps power the demand-side growth of the Tarot Protocol, with strong incentives for borrowers and, subsequently, lenders. Borrowing activity also generates additional protocol fees accrued to lenders and the protocol reserves.
A distribution to be controlled by protocol governance is allocated 19% of the total supply of $TAROT. This amount is distributed over 4 years and shall serve to promote the long-term growth of the Tarot Protocol.
The core development team is allocated 13.3% of the total supply of $TAROT. This allocation is distributed over 4 years.
LGE & Initial Liquidity
The $TAROT token launch will be one of the fairest in DeFi, by using a “Liquidity Generation Event.”
The Tarot LGE will be a 3-day event to bootstrap the initial liquidity for $TAROT on SpookySwap and SpiritSwap.
The LGE will take place in the Tarot User Interface and will commence on Tuesday, August 17, 2021 at 20:00 GMT.
3.2% of the total supply of $TAROT will be distributed to participants in the LGE. Users who deposit FTM into the LGE contract at any time during the LGE will be apportioned a proportional share of the LGE regular allocation (2.95% of the total supply of $TAROT) at the end. This allocation is distributed to all users who deposit during the event.
As an additional incentive, users who deposit during the first day of the LGE will be apportioned a proportional share of the LGE bonus allocation (0.25% of the total supply of $TAROT tokens). This allocation is distributed to users who deposit within the first 24 hours of the LGE.
Claimable $TAROT will be based on share of total deposits at the end of the bonus period, and at the end of the LGE. There is no front-running and being first or last to deposit for either distribution doesn’t matter.
After the LGE ends, 3.2% of the total supply of $TAROT will be claimable by users who participate in the event. Full vesting of $TAROT claimed through the LGE will occur by August 5, 2022.
The entire FTM proceeds from the LGE, along with 2.5% of the total supply of $TAROT, is allocated to bootstrapping initial liquidity. The liquidity will be distributed between SpookySwap (69%) and SpiritSwap (31%), the two most popular DEXs on Fantom Opera.
The LP tokens received by the LGE contract for adding liquidity to the FTM‑TAROT pair will be locked within the LGE contract for a minimum of 180 days. After the lockup period ends, the FTM-TAROT LP tokens will be transferred to the protocol reserves, where the strategy for their usage will be at the discretion of Tarot governance.
Early Tarot Users
Early active users of the Tarot Protocol are allocated 3% (1.5% for borrowers and 1.5% for lenders) of the total supply of $TAROT, distributed over 1 year.
A total of seven (7) snapshots of borrow and supply positions on Tarot were taken at blocks 13096506, 13272964, 13432617, 13605885, 13786458, 13962143, and 14122776. These blocks correspond to 48-hour intervals starting from July 27, 2021 at 20:30 GMT. The borrower and lender distributions for each snapshot have been allocated a portion of the total distribution:
For each snapshot, addresses with borrow positions totaling a minimum of 12 USD across all lending pools were included. Similarly, for each snapshot, supply positions totaling 12 USD across all lending pools were included.
These positions have been assigned a distribution proportional to their size relative to the total value of supply and borrow positions within each snapshot.
Full vesting of $TAROT claimed through this distribution will occur by August 5, 2022.
The Farming Rewards Program, along with distribution claims for LGE Participants and Early Tarot Users, will commence following the conclusion of the Liquidity Generation Event on August 20, 2021, after initial liquidity is added to the DEXs. These claims will be made available within the Tarot User Interface.