What is the issuance and circulation of Tornado Cash (TORN) coins?

Liquidity mining and rewards distribution play a significant role in the issuance and circulation of Tornado Cash (TORN) coins within its privacy-enhancing ecosystem.

Dec 02, 2024 at 10:58 pm

Issuance and Circulation of Tornado Cash (TORN) Coins

Tornado Cash is a decentralized, open-source privacy solution for Ethereum transactions. It allows users to enhance the privacy of their transactions by breaking the link between the sender, recipient, and transaction amount. To achieve this, Tornado Cash employs a unique mixing mechanism known as zero-knowledge proofs.

Issuance of TORN Coins

TORN is the native utility token of the Tornado Cash protocol. It plays a crucial role in the functioning and governance of the platform. TORN coins are primarily issued through a process called liquidity mining, where users are rewarded for providing liquidity to the Tornado Cash network.

• Liquidity Mining: Users can stake their ETH or ERC-20 tokens in designated liquidity pools on the Tornado Cash platform. In return, they receive TORN coins as rewards for providing liquidity and enhancing the privacy of the network. The rate of reward is determined by the amount of liquidity provided and the duration of the staking period.

Circulation of TORN Coins

TORN coins are primarily circulated through the following means:

• Liquidity Mining: As mentioned earlier, liquidity providers receive TORN coins as rewards. These coins can be used for various purposes within the Tornado Cash ecosystem or traded on exchanges.
• Transaction Fees: A portion of the transaction fees paid by users to enhance the privacy of their transactions is used to buy TORN coins from the open market. These coins are then distributed to liquidity providers as additional rewards.
• Governance: TORN coin holders have the right to participate in the governance of the Tornado Cash protocol. They can vote on proposals related to the development, operation, and future roadmap of the platform.

Tokenomics of TORN

The total supply of TORN coins is capped at 10,000,000. The initial distribution of TORN tokens was as follows:

• Seed Sale: 10% (1,000,000 TORN)
• Private Sale: 20% (2,000,000 TORN)
• Liquidity Mining: 30% (3,000,000 TORN)
• Team and Advisors: 15% (1,500,000 TORN)
• Ecosystem Growth and Expansion: 25% (2,500,000 TORN)

Usage and Benefits of TORN Coins

TORN coins serve several important functions within the Tornado Cash ecosystem:

• Network Governance: TORN coin holders have the right to participate in the governance of the Tornado Cash protocol and vote on proposals that affect the platform's development and operation.
• Liquidity Incentives: TORN coins are used to incentivize liquidity providers, encouraging them to provide liquidity to the Tornado Cash pools and enhancing the privacy of the network.
• Transaction Fees: A portion of the transaction fees paid by users to enhance the privacy of their transactions is used to buy TORN coins from the open market and distribute them to liquidity providers.

Additional Information

• Tornado Cash is a decentralized, open-source protocol. The TORN token is built on the Ethereum blockchain.
• TORN coins are used for liquidity incentivization, network governance, and transaction fee distribution.
• The total supply of TORN coins is 10,000,000.
• TORN coins can be purchased and traded on various cryptocurrency exchanges.