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The Importance Of TDROP On The Theta Network
February 06, 2023
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The TDROP token incentivizes activity on the ThetaDrop NFT Marketplace and provides decentralized governance. As a TNT-20 token built on the Theta blockchain, it operates under the concept of NFT Liquidity Mining. Users can earn TDROP by making purchases with TFUEL on ThetaDrop or through third-party NFT Dapps built on the marketplace's smart contract. This encourages early adopters to provide liquidity, leading to improved price discovery, higher trading volumes, and increased user growth.

TDROP provides three main benefits at launch with more to come, including VIP perks like early access and exclusive drops, staking rewards, and governance rights on ThetaDrop proposal changes. A full explanation of the Theta Ecosystem and TDROP can be found in the white paper.

VIP Benefits

The VIP benefits for TDROP holders are divided into three tiers: Bronze (100k TDROP), Silver (1m TDROP), and Gold (10m TDROP).

Bronze Tier offers:

  • VIP airdrops of NFTs, TDROP, and other tokens
  • Lower withdrawal fees and faster withdrawal times (coming soon)
  • A VIP Badge to differentiate your profile on ThetaDrop

Silver Tier includes all Bronze Tier benefits, plus:

  • Early access to new NFT drops on ThetaDrop

Gold Tier includes all Bronze and Silver Tier benefits, as well as:

  • Exclusive access to certain NFT drops through TDROP Gold Tier
  • NFTs listed on the ThetaDrop secondary market will be highlighted and sorted to the top of marketplace lists (coming soon)

TDROP utility is expected to expand beyond these benefits as ThetaDrop grows. Access to each tier is based on the average balance of TDROP held on ThetaDrop over the past 30 days, and the required amounts for each tier may be adjusted due to TDROP price fluctuations. TDROP deposited in ThetaDrop can be withdrawn at any time.

Staking/Unstaking TDROP

Staking TDROP is simple and can be done from the Theta Web Wallet or Mobile Wallet or browser extention wallet without the need for a Guardian Node or Edge Node. Here's how:

  1. Log in to your Theta Wallet on the web, mobile or browser extention.
  2. Go to the "Stakes" section to see your staked tokens, including TDROP, and your TDROP voting power and earnings.

  1. To stake TDROP, click "Deposit Stake," select TDROP from the dropdown menu, enter the amount of TDROP you want to stake, then confirm the transaction.

  1. Your staked TDROP and estimated earnings will now be shown, along with your voting power.

  1. To unstake TDROP, click "Withdraw Stake," select TDROP, enter the percentage of TDROP you want to unstake, and it will be returned to your Theta Wallet (0% to 100%).

Note that there is no minimum or maximum amount to stake and staked TDROP can be withdrawn at any time without restriction.

TDROP As A Governance Token

TDROP is not just a token reward for activity on ThetaDrop, it is also the governance token for the platform. By staking TDROP, users gain voting rights for proposals to change ThetaDrop. The voting power is based on the proportion of staked TDROP relative to the total staked TDROP. The first TDROP governance proposal, regarding TDROP earning rates for liquidity miners, has already been put up for vote.

As the governance process advances, TDROP holders will be able to initiate proposals and vote on them, which is expected to occur quarterly. Similar to popular DeFi platforms like Compound and Uniswap, TDROP governance voting will be conducted on-chain through smart contract calls. These community proposals will serve as a trial for the community governance features that will later be implemented on the Theta blockchain, to be voted on by THETA token holders.

Conclusion

In conclusion, the TDROP token plays a crucial role in the ThetaDrop NFT Marketplace by rewarding activity, providing decentralized governance, and incentivizing stakers. With its unique concept of NFT Liquidity Mining, TDROP tokens can be earned by making purchases or providing liquidity to the marketplace. TDROP holders also have the added benefits of VIP access, staking rewards, and governance rights. The staking process is simple and can be done from the Theta Web Wallet, Mobile Wallet or Browser Extension Wallet without the need for a specific node. TDROP also serves as the governance token for ThetaDrop, allowing holders to vote on proposed changes and shape the future of the platform. With its expanding utilities and on-chain governance mechanism, TDROP is a promising token for those looking to participate in the growing NFT market and contribute to the growth and success of the ThetaDrop marketplace.

 

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