TEDDY Rewards and Tokenomics
TEDDY is the secondary token issued by the Teddy Cash protocol. It captures the fee revenue that is generated by the system and incentivizes early adopters and Frontend Operators.
TEDDY rewards will only accrue to Stability Providers — i.e. users who deposit TSD to the Stability Pool, frontends who facilitate those deposits, and liquidity providers of the TSD:AVAX Pangolin pool.
TEDDY has a max supply of 82,000,000 tokens.
The total supply initially was designed to be 100,000,000 TEDDY. Due to a mistake during deployment of contracts, the Stability Pool rewards contract will only be able to reward 32M out of the 50M assigned tokens. This means that the remaining 18M tokens are stuck on the contract and essentially burned.
TEDDY is not a governance token at this time but that may change.
TEDDY is earned in three ways:
- Providing liquidity to the TSD:AVAX Pangolin pool.
TEDDY holders can stake their tokens to earn the fees generated by loan issuance and TSD redemptions. Learn more about staking.
TEDDY's community issuance (outside of LP incentives and the Community Reserve) follows a yearly halving schedule, described by the following function:
32,000,000 * (1–0.5^year). The purpose of this issuance curve is to favorably incentivize early adopters while also maintaining incentives for the long term.
As noted earlier, Teddy has a max supply of 82,000,000 tokens.
- 42.6% Community and early adopter rewards
- 39% for stability pool early adopter rewards. Distributed over 5 years.
- Year 1: 16,000,000 TEDDY
- Year 2: 8,000,000 TEDDY
- Year 3: 4,000,000 TEDDY
- Year 4 : 2,000,000 TEDDY
- Year 5: 1,000,000 TEDDY
- Year X: ...
- 3.6% for AVAX/TSD Pangolin LP rewards
- 3,000,000 TEDDY Distributed over the first 6 weeks
- 33% Treasury for partnerships, advisors, marketing and other rewards, e.g. additional LP rewards.
- 1M tokens was used for AVAX/TEDDY pool2 rewards.
- 24.4% Team. Locked for 1 year by smart contract. Then 25% is granted by a multi-sig every quarter.
Circulating supply figures below and in the excel EXCLUDE the treasury (26M remaining). The treasury may be used to fund further liquidity pools. When funds are allocated the figures below will be updated.
Detailed circulating supply can be found here:
Teddy circulating supply (3).xlsx
TEDDY circulating supply