Theta ecosystem, earlier this week, started the distribution of the highly anticipated TDROP among THETA holders that staked from the start of August to mid last month. The conception of the TNT-20 native token, which serves as the governance token for ThetaDrop, was based on NFT liquidity mining.
Here is a quick guide to get you in the know:
TDROP will be the governance and NFT liquidity token
Decentralized video streaming blockchain Theta launched the TDROP token on its network on February 1. The launch came after days of anticipation for the new token, expected to work with TFUEL and Theta tokens to leverage blockchain security and transaction volumes.
The ThetaDrop NFT platform would be home to the TDROP tokens by which users could gain governance rights (stake their holdings), implement liquidity mining, and enjoy VIP benefits.
TDROP staking
Community members can stake their TDROP tokens, which allows them to gain voting rights over governance proposals since TDROP will serve as the ThetaDrop marketplace’s governance token. Stakers would gain voting power equivalent to the percentage share of the total amount of TDROP tokens they have staked.
Votes would be held quarterly, and decisions would be reached entirely on-chain via smart contract calls. The first vote is expected to take place within the first quarter of the year to determine the yield rate for TDROP liquidity miners.
Token staking and THETA TVL are up
Since its launch, in excess of 1.7 billion TDROP tokens have been staked.
More than 1.7 billion $TDROP has been staked so far
The Theta network’s Total Value Locked (TVL) crossed $100 million for the first time shortly after the launch, peaking at $144.6 million yesterday.
THETA total value locked surged following the launch
This figure is $139.08 million at the time of writing – down 3.82% in the last 24 hours.
NFT Liquidity Mining
One of the significant advantages TDROP holders will enjoy is that ThetaDrop supports NFT liquidity mining, but how will it be implemented?
With the launch of the token, the ThetaDrop.com secondary marketplace would shift to a new smart contract, warranting the liquidity mining. The essence of mining would be to provide liquidity to the marketplace, scale trading volumes and, in consequence, spark user adoption.
Via mining, users can earn TDROP tokens when they complete purchases using TFUEL on the secondary marketplace or on an NFT dApp built on the NFT marketplace. Notably, any earned TDROP would be added to the staking balance and qualified for future rewards.
VIP benefits
At launch, the network said that TDROP holders could enjoy VIP benefits from one of three set categories. The bronze level would require ownership of at least 100k tokens, Silver – 1 million tokens and the gold tier – 10 million tokens.
Benefits would include early access and exclusive airdrops of tokens and NFTs. VIP users would also enjoy reduced withdrawal fees/ time taken.
Token distribution
TDROP has a total supply cap of 20 billion tokens. Half of the tokens would be circulated through a four-year period. Of this amount, 30% would be locked for NFT liquidity mining on ThetaDrop and 20% destined for staking rewards in decentralized governance.
The other half would be distributed in that 20% would be reserved for Theta developers 10% for the partners, consultants, and marketing team. The remaining 20% would be set aside for delegated stakers and validators.
As part of its ambition, Theta aims to enable entertainment firms deliver video content to their users at a low cost and facilitate user engagement (token rewards) via decentralized streaming. The blockchain network works with content creators, consumers, and distributors in line with this.
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