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NEPRI TFA TOKEN (NEPT)
The NEPRI TFA token (NEPT) is NEPRI TFA Protocol's governance token. It will be staked to vote on active polls and be required as a deposit for making new governance polls. In future iterations of NEPRI, it will serve further purposes for the protocol that increase its utility and value.
Users that will stake NEPT tokens will also earn NEPT rewards generated from withdrawing collateral from CDP positions within the protocol.
NEPT will also be used to incentivize users to farm yields by staking LP tokens which will be minted by providing liquidity for NEPT and tAssets. Yield will be paid to the users from NEPTs that are newly minted through annual inflation, which will gradually increase the total supply of NEPT until the end of 4th year.

NEPRI TFA Token Supply

There are planned to be a total of 500,000,000 NEPT tokens to be distributed over 4 years. Beyond that, there will be no more new NEPT tokens introduced to the supply.

Cumulative Distribution Schedule (in millions)

Genesis
Y1
Y2
Y3
Y4
UNI airdrop
9.5
9.5
9.5
9.5
9.5
NEP staking airdrop
9.5
9.5
9.5
9.5
9.5
NEP staking reward
0
19
19
19
19
tAsset LP staking
0
90
135
260
270
NEPT LP staking
0
21
36
40
52
Community pool
38
39
55
92
140
Token supply
57
188
264
430
500
Annual inflation (%)
-
229.82%
40.42%
62.87%
16.28%
A total of 57M tokens will be available at the genesis of NEPRI TFA Protocol. The distribution of these tokens will be made as below:
  • UNI Airdrop: 17% (9.5M) tokens will be airdropped to UNI holders
  • NEP staker airdrop: 17% (9.5M) tokens will be airdropped to NEP stakers.
  • Community Pool: 66% (38M) tokens will be allocated to community pool.
The total supply of NEPT tokens will increase for 4 years due to inflation, until the total token supply becomes 500M.
The distribution structure at the end of year 4 will look like the below:
  • Airdrop: The airdrop amount which was originally distributed to UNI holders and NEP stakers will now account for 3.8% (19M) of the total token supply.
  • NEP staking reward: 3.8% (19M) will be distributed to NEP stakers throughout the first year since the launching of NEPRI TFA Protocol. NEPT will be distributed every 100,000 blocks (approximately once every week) to NEP stakers only in the first year, starting from block height 920,000. Snapshot will be taken every 100,000 blocks to determine who is eligible for the staking reward distribution.
  • tAsset LP Staking: 54% (270M) tokens will be distributed to all tAsset and tETH staking pools by the end of year 4. Tokens will be distributed daily to each staking pool (initially 13 pairs for each NEPT and tETH) based on their weight compared to other assets.
  • NEPT LP Staking: 10.4% (52M) tokens will be evenly distributed to NEPT-nYUSD and NEPT-nYUSD (tETH) staking pools by the end of year 4. NEPT-nYUSD pair will have an initial weight of 250%, which is 3 times the initial weight of tAssets. Tokens are distributed on daily basis.
  • Community Pool: 28% (140M) of total NEPT supply will be distributed to Community Pool by the end of year 4.

Distribution Rate (Inflation)

Inflation rate of NEPT tokens is designed to gradually decrease every year, until it reaches 500M at the end of year 4. After the end of year 4, no more NEPT tokens will be minted through inflation.

Staking Rewards

This section discusses staking rewards for NEPT tokens, which will come from trading fees used to buy back NEPT from the market. Staking LP tokens also generates NEPT rewards, which come directly from new NEPT tokens created every block.

From Protocol Fees

NEPT Token stakers will receive NEPT token rewards every block, which will be generated from protocol fees from CDP withdrawals. The protocol fees will be collected from CDP collateral and sold for nYUSD to buy NEPT through NEPRIswap. The NEPT tokens are then distributed as rewards to NEPT stakers in proportion to the percentage of total stake. This process balances the generation of new NEPT by creating buying pressure.

From Poll Creation Fees

Whenever a new governance poll is created, an initial deposit of NEPT tokens must be paid. If the poll does not reach voting quorum, this deposit is distributed to all NEPT stakers proportionately.
Staked NEPT tokens utilized in on-going polls cannot be withdrawn until the poll completes. In addition, the number of NEPT used in a proposal cannot be modified after the vote as been submitted.

Procedure

The following steps will outline the governance procedure:
  1. 1.
    A new poll is created with an initial deposit that meets proposal_deposit
  2. 2.
    The poll enters the voting phase, where it can voted for by anybody with a staked NEPT position. Users can vote yes or no, and can assign how many of their staked NEPT to use for voting.
  3. 3.
    The voting period ends after voting_period blocks have passed.
  4. 4.
    The poll's votes are tallied and passes if both quorum (minimum participation of all staked NEPT) and threshold (minimum ratio of yes to no votes) are met.
  5. 5.
    If the poll passes, its contents will be executed after effective_delay blocks have ended. The poll must be executed prior to expiration_period, otherwise it will automatically expire and no longer be considered valid.
Last modified 6mo ago