Utility of $TINY Tokens

Proposal Discussion
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Title:[Utility of $TINY Tokens]

Abstract:$TINY tokens can be used as discounted fees for services such as swaps. It is important to make these fees cheaper than the conventional ones.

Objective:To enhance the liquidity and value of $TINY, and to aim for increased revenue and sustainable development for Tinyman.

Background:By providing utility to tokens, they gain value beyond that of currency. This is what differentiates WEB3 from WEB2. By demonstrating use cases, we can serve as a model for other projects. The utility of the token will create multiple arbitrage opportunities, activate the Algorand chain, increase rewards for node operators through gas fee income, attract attention from other chains, and increase various APYs.

Details:Process half of the swap fees using $TINY. In this case, $TINY will be processed at 120% of its market value. Implement this immediately once $TINY is in circulation and the system is complete.A prerequisite is that the user’s account has the required amount of $TINY.

Challenges and Considerations:There may be possibilities for misuse. We will consider this further.

Benefits:Able to keep swap fees low. Can post about the excellence of Tinyman on X.

Metrics for Success:$TINY’s price increases and Tinyman’s revenue is positive year-on-year.

Budget and Funding:I don’t have a clear idea, so I’ll leave it to you.

Additional Information:I want to investigate use cases on other chains as well. If you have any detailed information, please share it.

Conclusion:Rather than using $TINY for fundraising or speculation, it will serve as a model case for a utility token, stimulating the overall tokenomics of Algorand.

This is a preliminary draft. Many other proposals are planned. We look forward to your feedback and comments. Let’s all work together to promote Tinyman!

15 Likes
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Are you talking about the overall swap fees or just the very small fee that tinyman takes?

If we are talking about the overall fees lp providers make would that not mean that at every swap someone makes, paying the fee with $TINY, that automatically gets sold again for the pool pair since those fees need to end up in the pool that was used?

I’m not sure about this, but it sounds like that would actually mean sell pressure when using $TINY to swap.

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Thank you for your feedback.
The breakdown of Tinyman fees is as follows:

The overall fee is 0.3%, with 0.25% going to the poolers and 0.05% to Tinyman. The idea is to offer an option to pay this 0.05% portion with $TINY.

In any form, increasing the places where $TINY can be used will help reduce selling pressure and establish a price floor for $TINY.

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I guess that would make more sense but would heavily depend on how much of those fees tinyman needs to fund development costs, which probably can’t be paid using $TINY. Resulting in the 0.05% being sold after all.

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I think it would be more like Tinyman “buying back” $TINY rather than selling it. However, considering this is Tinyman’s only source of revenue, this proposal might be challenging.

We need more use cases for $TINY tokens. I’ll reconsider this a bit more.

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I had an idea. It’s the other way around.

How about a system where users receive $TINY each time they use a swap on Tinyman?

The more they use Tinyman, the more $TINY they accumulate. They can then stake it to gather TINY power, increasing their influence. It’s a simple system.

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I like the proposal, keep It simple :smile:

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Maybe those who hold TINY can get paid as a dividend from transaction fees

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Uniswap is heading in that direction.
We should consider this carefully from a legal perspective.
Here is some reference information.

UNI token holders will vote for a new fee mechanism that would shift some rewards away from the decentralized exchange’s liquidity providers to its token holders instead.

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To add to this, we already see several projects (not just on algorand like gmx, goodcryptox, others) doing a similar thing.

You accumulate based on trading activity. I suppose a challenge here is arbitrage bots, but that’s manageable.

Holding/staking/vault a certain amount entitles you to reduced fees and revenue share (maybe with those rewards in TINY + ALGO from the AF grants)

I also think the multiplier-points system GMX does with their token staking can be done here too. You reward long-term users and holders. This ofc introduces NFTs for those users that could enable other perks.

All of this adds a ridiculous amount of interest, buying, swapping… basically all the protocol/chain activity you could dream of from a tiny little utility token :slight_smile:

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Tinyman can even collaborate with metaverse
/gaming projects like Rexlms and others.

Holders of tinyman token can benefit somehow and get special access etc within parts of those games or metaverse.

Another possibility is providing benefits to tiny holders in real life… but this requires a lot of work and pitching the idea to real companies. Like maybe get a special discount at lavazza coffee for holding tiny.

Tiny should partner with Ora somehow. I don’t know how or what can be done exactly but it would be awesome.

Farming - ppl holding tiny can get paid in algo via TDR perhaps.

Do not pay users in tiny token. - pay users in algo eth or any big currency/coin.

Paying ppl in tiny at the start is going to lead to sell pressure. But paying in top currencies, will incentivize ppl to hold tiny.

Launch tiny on multiple platforms and at multiple prices and multiple periods.

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Maybe holders get a share of transactions fees and voting power.

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I like this idea better than the original post.

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Nice to see discussions happening. I just wanted to add that users who interacted with the platform before the hack are an important part of its success and helped pave the way towards Tiny being a sustainable part of the Algorand DeFi scene, and they should not be forgotten in the TINY distribution.

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I believe the $TINY talknomics will be announced soon,
Here is a summary of information at this time.

In our enhanced governance model, the introduction of the TINY Token Lock is a key feature. By locking their TINY tokens, users officially become Governors, gaining a more influential role in the platform’s governance.

Longer Commitments, More Power: The longer a user locks their TINY tokens, the more TINY Power they accumulate. This system is designed to reward long-term commitment and investment in the platform’s governance.

Reward Multiplier and Voting Power: A significant benefit of accumulating more TINY Power is the enhanced multipliers for Tinyman Governance rewards, $TINY Staking Proposals, and increased Voting Power on Tinyman Governance.

Governance Rewards: Earning Governance Rewards is an exclusive benefit for users who become Governors. This role not only enables them to shape key decisions but also aligns their interests with the platform’s future. Governance Rewards are determined by each Governor’s accumulated Tiny Power, which is gained through locking TINY tokens.

$TINY Staking Proposals: Governors will have the power to vote on the distribution of TINY Tokens across various liquidity pools on Tinyman. This voting mechanism empowers Governors to direct rewards to specific pools, incentivizing participation and investment in areas they believe are most beneficial for them and the platform’s growth.

Strategic Engagement by Ecosystem Projects: We also anticipate an active strategic approach from various projects within the ecosystem. These projects are expected to devise their strategies and campaigns to enhance their LP rewards, utilizing their involvement in the governance system.

Treasury Management: Aligning with the governance model, our decentralized treasury management system will ensure the platform’s long-term financial health and supports the initiatives and decisions made by our Governors.

TINY Power is needed to vote on the TinyMan Governance proposal.

TINY Power can be earned by locking TINY Tokens for periods. (TINY Token Amount x Duration)

Farming Rewards Distribution: You’ll get to decide which liquidity pools receive the lion’s share of farming rewards. This means you can help shape the incentives that drive liquidity to the pools you believe are most important.

Long-term Staking Incentives: We’ve designed a system that rewards those who commit to the long-term success of Tinyman. By locking your TINY tokens, you’ll gain increased voting power and governance rewards. This not only gives you more say in decisions but also helps stabilize the TINY token price by reducing circulating supply.

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From the above, it seems that they took Curve Finance into consideration. In other words, the price of $TINY is predicted to be quite stable. Although it is DYRO.

This means that services like Convex may also emerge. A $TINY war may break out.

If you are interested, check out Curve Finance and Convex.

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Would you mind elaborating on the types of services you see emerging and what makes them special?

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The following is an estimation of the $TINY movement based on the Curve Finance case.

Staking $TINY to accumulate Tiny Power.
↓
Tiny Power is voting power, which you use to maximize your profit by voting for proposals to increase farming rewards for LP tokens you hold.
↓
Everyone buys $TINYs up to the limit at which it is more effective to vote for the above, even if they have to buy $TINYs.
↓
The price stabilizes as a result of the buying pressure on $TINY.

There are still more methods to apply, and it would be more fun if the community could come up with various talknomics ideas and share in the growth and development of the Tiny Man.

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More to the point, many other projects will be looking to increase the APR of their token LPs and consider stable operations, so $TINY will be purchased more by companies than by individuals, and the more companies that deploy tokens, the more $TINY will be purchased. This is because the benefits are significant.

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And don’t worry — we’ve even included a veto option as a safeguard against any potentially harmful proposals.

Every month, our community gets to vote on which pools should receive incentives. It’s like a monthly check-in, allowing us to adapt to the ever-changing DeFi landscape. This way, we’re not just reacting to the market — we’re staying ahead of it, together.

3 Likes