Note: Reward claiming is not live yet, please stay safe of scams.
In this article, we will go through TokenSight’s TKST Revenue Share system, designed to incentivize TKST holders with a revenue share for the long-term vision of the platform.
This feature not only amplifies the benefits of long-term holding TKST but also lays the foundation for a community-driven financial ecosystem.
How Does It Work?
As outlined in our documentation and communicated during our launch, a significant aspect of TKST is the revenue-sharing model hinged on platform fees. The rewards stem from:
- Token transaction taxes within the liquidity pool (TKST/WETH on Uniswap V2)
- Platform revenue generated from successful trade executions.
This piece explores the mechanics of the token tax revenue share mechanism, offering a transparent view of how we reward our community.
Our smart contract enforces a 5% tax on both buying and selling transactions of TKST, which is then allocated as follows:
- 2% is distributed among token holders as revenue,
- 2% is channeled to the project treasury,
- 1% is allocated to liquidity (TKST/WETH).
Essentially, TKST holders are entitled to a 40% share of the token taxes, creating a sustainable reward system.
Once TokenSight is live, TKST holders can claim their share of revenue tokens or rewards under the following rules:
- A wallet must maintain a minimum balance of 1000 TKST tokens,
- Balance checks occur every few hours (snapshot), with rewards accumulating based on asset holdings.
Reward claims are permissible once every 2 weeks, with eligibility assessment carried out during this period, as well as the next 2 week period. Unclaimed rewards remain securely in your balance, awaiting your claim.
Rewards vesting period
The users will need not to sell their tokens and comply to the rules written above for two additional weeks in order to be able to claim the accrued rewards. This serves as a vesting period, and can be seen as rewards being vested for 2 weeks until they are eligible for claiming.
The revenue share model is tailored to incentivize long-term holding. Initially, rewards will be distributed in ETH, with plans to extend payout options to TKST or stable coins in the near future.
The minimum token balance criteria are rooted in technical efficiency — for lesser amounts, distribution costs outweigh the benefits of the claims.
Tokens eligible for revenue share rewards
It is important to note that not all tokens in circulation are eligible for revenue-sharing.
Tokens allocated for project treasury, ecosystem reserves, and the tokens provided for liquidity by the team (only by the team, not other lp providers) are excluded from receiving rewards.
However, vested tokens for seed investors, advisors, and the team are included to foster long-term holding across all stakeholders. Additionally tokens provided as a liquidity by other entities other than the team are eligible for revenue share.
Approximately only 50% of the total token supply is revenue-share eligible.
Accrued revenue share rewards leading up to the product launch will be retrospectively airdropped to eligible token holders, proportionally to their holdings. Anyone with more than 1000 tokens is eligible for the airdrop. The holding duration increases the airdrop quantity (holders are rewarded more).
The minimum token holding amount is 1000 tokens.
Minimum holding period to be eligible for the airdrop is 2 weeks.
Participants who sell more than 40% of their initial TKST tokens will not qualify for the initial airdrop. This measure is designed to encourage prolonged token retention and foster a resilient community. Examples of airdrop eligibility are provided below.
The formula used is to reward long term holders.
The airdrop criteria is simple, and in simple words it can be described as:
To be eligible, you must maintain a minimum token balance of 1,000 for a duration of at least two weeks, while refraining from selling more than 40% of your initial purchase.
First Snapshot and Initial Reward Distribution
The snapshot for the initial airdrop will happen close to the product launch date, with rewards being paid out in ETH. Since writing this article, the revenue share wallet has garnered over 132 ETH (>$242k) in just over four days.
No action is required from TKST holders to claim the initial airdrop.
Upon TokenSight’s launch, claims can be made through the TokenSight Dashboard at https://app.tokensight.io.
Airdrop Eligibility Examples
Here are few examples for airdrop eligibility:
- User1: Bought 10,000 TKST tokens at time A close to token launch, sold 4,500 TKST tokens at time B. At the airdrop snapshot, the user has net selling outflows of 4,500 (> 40% of what they bought). User1 is not eligible for the airdrop.
- User2: Bought 10,000 TKST tokens at time A close to token launch, sold 6,000 TKST tokens at time B, bought again 3,000 TKST tokens at time C. At the airdrop snapshot, the user has net selling outflows of 3,000 (< 40% of their initial balance). User2 is eligible for the airdrop.
- User3: Bought 1000 TKST tokens at time A, sold 500 TKST tokens, bought back 400 tokens. At the airdrop snapshot, the user has total of 900 TKST tokens. User3 is excluded — the minimum token requirement is not met.
- User4: First time bought 1500 TKST tokens 3 days before the airdrop snapshot. User4 is not eligible for the airdrop.
- User5: Initially bought 2000 tokens 3 weeks before the airdrop snapshot and maintained > 1200 TKST token balance during the period until the airdrop snapshot. The user did multiple buys and sells. At the time of the snapshot user has 1500 tokens. User5 is eligible for the airdrop.
The initial airdrop is anticipated to generate substantial revenue for eligible users. Below is an illustrative calculation based on conservative estimates, involving a total revenue share of 200 ETH and a token holding of 10,000 TKST.
Token balance: 10,000 TKST (0.01% of the total token supply)
Total revenue share amount: 200 ETH
Maximum token supply eligible for revenue share: ~50%
Revenue share percent from the total amount: 0.02% (10,000/50,000,000)
Expected airdrop amount: 0.04 ETH ((0.02/100) * 200)
As we inch closer to making the reward claim feature live, our primary focus remains on launching the product, slated for the end of November 2023.
Stay tuned for more updates by following us on our official channels to avoid falling for scams.