Overview

TARO Token

TARO token serves as the utility token that fuels the Taroecosystem, aligning incentives to boost protocol growth.

veTARO - Voting Escrowed TARO

veTaro token serves as the governance access token within the Taroprotocol, enabling holders to actively participate in TARO Finance's future decentralized governance. It is obtained by staking native TARO tokens with a 1:1 conversion ratio. veTARO accrues value through three primary methods:

  • Trading Fees: Holders receive a percentage of trading fees.

  • esTaro Rewards: Holders earn esTaro rewards for their participation.

  • Market Voting: Holders can vote to boost esTaro incentives for specific markets.

This structure ensures that veTaro holders are integral to the protocol's growth and decision-making processes.

esTaro - Escrowed TARO

esTaro is an additional reward token that is distributed to both veTaro holders and platform traders. It serves as an incentive to encourage active participation and drive protocol growth. esTaro can be vested to be turned into TARO tokens.

Fee Flow and Distribution

Taroprotocol collects fees and premiums from users trading on the platform. These fees are distributed to ensure the protocol's sustainability and incentivize active participation:

Premiums and Fees: Users pay premiums and fees when trading through the Taroplatform.

Fee Pool: These fees are collected in the Fee Pool module.

Fee Distribution: The fees are divided into three parts:

  • Solver Fees: These incentivize Solvers to provide optimal routing solutions.

  • TaroStakers Fees: These encourage holders to stake TARO, thereby strengthening the community.

  • Protocol Fees: These cover the transaction execution and operational costs of the Taro protocol.

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