The TradeStars Token (TSX)

The native digital utility token of the TradeStars Platform (TradeStars Token) is a major component of the TradeStars' ecosystem.

TradeStars Token will be issued as ERC-20 standard compliant digital token on the Ethereum blockchain, and it is designed to reward participants who interact within the TradeStars Platform.

TSX is the vehicle to drive alignment and participation in the platform, and TSX holders should be people who interact with the it in some way, are committed to its future development, and want a seat at the governance table.

We expect TSX holders to help guide the platform to its fullest potential through experimentation and active participation. Unlocking new Fractional NFT markets, changes in the platform transaction fees, markets pricing formula, and anything contentious will certainly go to the TSX token holders for review.

Our Users: The most Important Stakeholders

The TradeStars platform allows any Ethereum account to purchase Smart Tokens of any of the existing Fractional NFT markets, or even create their own markets in the future.

This process can be seen as adding liquidity to the these NFT markets (in the form of reserve tokens). Liquidity attracts traders, trading generates fees, and ultimately Fractional NFT markets' profitability attracts more liquidity.

In this process early liquidity providers take on more risk and opportunity cost. We believe that these platform users should get to participate early on in deciding how the platform evolves.

We propose then a "liquidity mining scheme" for the TSX distribution that rewards proportionally these, and future users of the platform. In other words, in exchange for providing liquidity, (by purchasing smart tokens), TSX will be mined and distributed to these users.

Token Supply and Distribution

The total supply of TSX tokens will be capped at 100.000.000. This does not mean that this cap will ever be reached. It will be up to governance (controlled by TSX token holders) to decide if the distribution should end before this cap is reached.

21,000,000 TSX will be allocated to investors, all subject to lockup and vesting periods.

17,500,000 TSX will be initially allocated to founders, stock options and advisors, all subject to lockup and vesting periods.

9,500,000 TSX will be allocated to the TradeStars Reserve. This fund will be used to attract and incentivize strategic partners that will help the TradeStars ecosystem grow and thrive, as well as for future fundraising rounds to support TradeStars’ operations and growth.

The remaining 52M tokens are intended to be mostly distributed to users of the platform (play2earn and staking rewards) in the coming years.

Every week 150,000 TSX will be distributed to users. This represents a supply inflation rate for the first year of 15% from the initial supply of 48M tokens. This high rate of supply inflation is meant to kickstart the distribution of governance rights of the protocol to those who earn it.

At the rate of 150,000 TSX per week, it would take almost 6,6 years to distribute the whole 52M TSX remaining before reaching the 100M cap. The schedule of TSX distribution over the next few years - and whether it should stop before the 100M cap is reached - will be extensively discussed within the TradeStars community and will ultimately be decided by TSX holders.