Tokenomics
Tapir Protocol's tokenomics are designed to align long-term incentives across all participants — depositors, liquidity providers, governance voters, and the core team — while bootstrapping sustainable protocol growth.
TPR Token Overview
Token Name
Tapir Protocol Token
Ticker
TPR
Total Supply
1,000,000,000 TPR
Token Type
ERC-20 (Governance & Utility)
TPR is the native token of Tapir Protocol. It serves as the primary mechanism for governance participation, fee capture, and protocol incentivization. TPR follows a deflationary model through an active burn mechanism funded by protocol revenue.
Token Distribution
Allocation
Share
Tokens
Cliff
Vesting
TGE Unlock
Pre-Seed
8%
80,000,000
5 months
12-month linear
10%
Seed
10%
100,000,000
5 months
16-month linear
8%
Public Sale / Series A
10%
100,000,000
1 month
4-month linear
20%
Team
33%
330,000,000
12 months
24-month linear
0%
Partner Incentives
10%
100,000,000
6 months
16-month linear
50%
Liquidity Incentives
15%
150,000,000
6 months
36-month epoch-based distribution
10%
Advisors
4%
40,000,000
9 months
36-month linear
0%
Treasury
10%
100,000,000
8 months
24-month linear, DAO-controlled
0%
Note on Liquidity Incentives: Of the 150,000,000 TPR (15% of total supply) designated for liquidity incentives, 120,000,000 TPR is distributable through the point system at a 1:1 fixed ratio (1 point = 1 TPR), and 30,000,000 TPR is held as a reserve buffer for future initiatives.
Token Utility
Governance
TPR is primarily a governance token. Holders can participate in DAO governance to direct protocol operations, approve treasury spending, set incentive parameters, and prioritize development initiatives. All core team expenditures are proposed to and approved by the DAO.
Protocol Fee Capture
The protocol collects redemption fees where configured at the pool level:
Fee Type
Rate
Trigger
Redemption Fee
Pool-specific / configurable
Applied when users redeem or recombine positions into the base asset
Collected fees are split:
50% → Used to buy back and burn TPR tokens
50% → Sent to the DAO treasury for protocol operations
Burn Mechanism
Tapir implements a deflationary burn model to reduce circulating supply over time. A dedicated burn smart contract accumulates protocol fees and periodically swaps them for TPR on the open market. The purchased TPR is then permanently burned, reducing total supply.
The DAO triggers the burn function on a regular cadence. This creates consistent buy pressure from real protocol revenue and reduces outstanding supply, directly benefiting long-term holders.
Incentive Program
The Tapir Point System distributes TPR tokens to participants who contribute meaningful value through TVL deposits and AMM liquidity provision.
How It Works
Points are earned through two primary mechanisms and convert to TPR at a 1:1 ratio:
Mechanism
What It Rewards
Multiplier
TVL Points
Holding DP (Depeg Protection) and YB (Yield Bearing) tokens
α (per-pool, dynamically adjusted)
AMM Points
Providing liquidity and earning fees in DP/YB AMM pools
β (per-pool, dynamically adjusted)
TVL points accrue daily based on the USD value of tokens held for a full UTC day. AMM points accrue based on actual fees earned, which naturally rewards liquidity providers who concentrate at actively-traded price ranges and disincentivizes wash trading.
Epoch-Based Distribution
Incentives are distributed in weekly epochs (7 days). Each Depeg Pool has independent per-epoch point targets set by governance. The control mechanism works as follows:
If a pool undershoots its target: Participants receive points 1:1, and the pool's multiplier increases for the next epoch to attract more capital.
If a pool overshoots its target: Points are scaled down proportionally so total distribution is capped at the target, and the multiplier decreases to prevent over-incentivization.
This feedback loop ensures efficient allocation without overpaying for TVL or liquidity.
Example Scenario:
Target TVL: 1,000 ETH, 10,000 TPR tokens are distributed weekly to liquidity
If Actual TVL:
1,200 ETH (+20%), Reduce next epoch’s rewards by 20% to 8,000 TPR.
800 ETH (-20%), Increase next epoch’s rewards by 20% to 12,000 TPR.
Combined APR for Liquidity Providers
LPs earn both TVL points (for tokens deposited in their LP position) and AMM points (for fees earned), making LP provision significantly more attractive than passive holding:
TVL Points
0.42%
~21.8%
AMM Points
0.64%
~33.3%
Combined LP APR
1.06%
~55.1%
Estimates based on α = 0.02, β = 100.0, TPR price of $0.03, 10% daily turnover, and 0.3% AMM fee tier.
Suggested Release Schedule
Token distribution from the incentive pool follows a declining schedule to front-load growth while preserving long-term sustainability:
Months 1–3
10,000,000 TPR/month
30,000,000
Months 4–6
8,000,000 TPR/month
54,000,000
Months 7–12
6,000,000 TPR/month
90,000,000
Months 13–18
4,000,000 TPR/month
114,000,000
Month 19+
1,000,000 TPR/month
120,000,000
Actual per-epoch distribution is determined by governance-set pool targets and real participation levels, not fixed emissions.
Anti-Gaming Protections
The point system includes multiple layers of protection against manipulation:
Full-Day Requirement — Only complete UTC days count for TVL points, preventing flash-loan attacks.
Transfer Reset — Transferring tokens resets the holding period for the transferred amount.
Fee-Based AMM Rewards — Rewarding based on fees earned (not raw liquidity) means wash traders pay real costs exceeding potential gains.
Bounded Multipliers — Hard limits on multiplier ranges prevent extreme point inflation.
Dampening Factor — Multiplier adjustments are smoothed (γ = 0.5) to prevent manipulation via sudden activity spikes.
Vesting & Unlock Schedule
Stakeholder
Cliff
Vesting
TGE Unlock
Pre-Seed Investors
5 months
12-month linear
10%
Seed Investors
5 months
16-month linear
8%
Public Sale / Series A
1 month
4-month linear
20%
Team
12 months
24-month linear
0%
Partner Incentives
6 months
16-month linear
50%
Liquidity Incentives
6 months
36-month linear
10%
Advisors
9 months
36-month linear
0%
Treasury
8 months
24-month linear
0%
Initial circulating supply at TGE: approximately 10.1% (101,000,000 TPR).
Full supply unlock: Completes by month 45.
Incentive Token Unlock
Tokens earned through the point system follow a sequential unlock schedule tied to when points were earned:
Cliff
6 months from TGE
Unlock Order
Sequential — earliest points unlock first
Unlock formula:
This means early participants unlock before later participants, rewarding those who contribute during the critical bootstrapping phase while maintaining alignment with the protocol's long-term success.
DAO Treasury & Operations
All funds raised from token sales are deposited into the DAO-controlled treasury. The core team submits proposals to receive payments, ensuring all spending is transparent and governance-approved.
The treasury is funded by:
50% of all protocol fees (withdrawal fees)
Initial token sale proceeds
Reserve allocation (10% of total supply)
This structure ensures the protocol is self-sustaining and accountable to its token holders.
Value Accrual
TPR captures value through multiple reinforcing mechanisms:
Burn Mechanism: 50% of protocol fees are used to buy back and burn TPR, continuously reducing circulating supply.
Governance Utility: TPR holders direct treasury spending and protocol parameters, making the token essential for protocol participation.
Incentive Demand: The point system creates ongoing demand for TPR as participants earn and hold tokens to benefit from protocol growth.
Lockup Requirements: Vesting schedules and incentive lockups reduce circulating supply, aligning all stakeholders with long-term value creation.
As TVL grows and more pools launch, protocol fee revenue increases, accelerating the burn rate and strengthening the deflationary flywheel.
Governance Parameters
The following parameters are adjustable by the DAO and affect token distribution dynamics:
TVL Multiplier (α)
0.02
0.01 – 1.0
Points earned per dollar of TVL per day
AMM Fee Multiplier (β)
100.0
1.0 – 1,000.0
Points earned per dollar of AMM fees
Dampening Factor (γ)
0.5
0.1 – 1.0
Controls multiplier adjustment speed
Epoch Duration
7 days
7 – 14 days
Length of each distribution cycle
Redemption Fee
Configurable by pool parameters
Governance-set
Fee on redemptions or equivalent exit flows
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