Thor V2 Contract Update | Tokenomics, Taxes, Fees, and Additional Features
Asgardians,
V2 contracts implementation will take place on Sunday, March 6th. In this article, we will detail the upcoming changes to the contract.
Node Creation Tokenomics Changes
As you’re all aware, one of the biggest challenges we’ve faced is the selling pressure caused by the current V1 contracts. The new V2 contracts will help to mitigate the sell pressure issue in a couple of ways, as described below. The graphic below highlights node creation tokenomics differences between the V1 and V2 contracts.
Reduction of tokens sold at node creation/compound
In the V2 contract, the number of tokens sold at node creation/compound is reduced from 46% to 30%, which is a significant 35% reduction in node creation sell pressure as compared with the V1 contract. We expect to see a notable positive difference with this change.
Adjustable allocations during bear & bull markets
Implementing adjustable allocation percentages for the reward/distribution pool and the treasury will allow the protocol to further control node creation sell pressure by reducing the amount of $THOR tokens that are sold on node creation. As noted by the “*” above, the reward/distribution pool and treasury percentages will always total 80% but can be dynamically changed to support price action during bear and bull markets.
For example:
- Implementing adjustable allocation percentages for the reward/distribution pool and the treasury will allow the protocol to further control node creation sell pressure by reducing the amount of $THOR tokens that are sold on node creation. For example:
- During bearish/high-sell-off periods:
- the treasury percentage (which is sold for $AVAX) may be reduced by X%; and
- the reward/distribution pool percentage (which isn’t sold) may be increased X%,
- This reduces the number of tokens sold at node creation.
- During bullish/low-sell-off periods:
- the treasury percentage (which is sold for $AVAX) may be increased by X%; and
- the reward/distribution pool percentage (which isn’t sold) may be decreased by X%,
- Which increases the percentage of tokens sold at node creation.
These two changes will significantly mitigate the node creation/compound sell pressure that has been negatively impacting price action.
Tax and Fee Changes
The graphic above highlights the previously-announced tax and fee changes for the protocol.
Eliminated tax sells
V2 contract permanently eliminates any selling of $THOR collected via claim taxes. 100% of the $THOR tokens collected from the claim taxes will be sent to the reward/distribution pool.
Maintenance fees
Maintenance fees paid in $AVAX will be added in the V2 contract, and 100% of those fees will be sent to the treasury. Each node will have a maintenance fee timer. The following table includes details on how maintenance fee payments and the timer will work:
Additional v2 Features
Compound with wallet balance
- With v2 you can now use $THOR in wallet combined with unclaimed rewards to compound
Unlimited Nodes per Wallet
- It will now be possible to have more than 100 nodes per wallet.
Wallet Connect integration
- The dApp will now support Wallet Connect in addition to Metamask wallet.
AVAX gas fee optimizations
- The code for V2 code will be optimized to save gas. Expect 30–50% savings on gas fees.
We hope you all enjoy the benefits of the new contracts, and can’t wait to start the next phase of our journey with all of you!
We cannot wait to see you in Asgard!
