TIDE Tokenomics
Harbor is built to reward long-term participation, prioritize early growth, and create sustainable value accrual. The tokenomics are designed to balance aggressive initial growth with long-term deflationary value capture.
Total Supply: 1,000,000,000 TIDE (1 billion tokens)
Token Allocation
| Category | Allocation | Details |
|---|---|---|
| 🏦 Bao Treasury | 25% | Long-term stake in Harbor's success. Capped at 25%; surplus above cap rewards BAO holders. |
| 🌊 Harbor Treasury | 40.5% | Operating reserve for incentives, growth, and partnerships. Includes Points Airdrop allocation. |
| 🚀 Booster Program | 3% | Distributed over 3 years (1% per year) to community contributors and developers. |
| 🧑💻 Founders & Core Team | 22% | 8 team members, vested linearly over 5 years for long-term alignment. |
| 🔐 veBAO Holders | 5% | Fully liquid at TGE, recognizing Bao's earliest supporters. |
| 🤝 veFXN Holders | 3% | Fully liquid at TGE, strategic partnership allocation. |
| 🎟️ Community Sale | 1.5% | Initial funding participants who supported audits and development. |
Launch Structure
Low Initial Float Design
While 70-80% of TIDE will be liquid at TGE, the vast majority is held by Harbor and Bao treasuries — strategic long-term reserves, not circulating supply.
Initial circulating float consists primarily of:
- Community sale participants
- Booster rewards
- Early airdrop distributions
This creates:
- Strong price discovery on limited float
- High-value treasury reserves for sustainable incentives
- Reduced sell pressure from mercenary participants
Treasury Governance
All treasury token usage will follow:
- Transparent, pre-announced frameworks
- Multisig approval process
- Long-term transition to governance committee oversight
- Community accountability
Revenue Distribution Model
Harbor's tokenomics evolve through three distinct phases based on protocol maturity.
Phase 1: Growth Phase (Pre-$10M TVL)
Goal: Reach critical mass and establish protocol-market fit
- 100% of protocol revenue reinvested in ecosystem
- 75% directed to Stability Pool rewards
- 25% to Protocol-Owned Liquidity (POL) building
- Pre-launch: Accumulate ETH to pair with TIDE at launch
- Post-launch: Buy TIDE + pair with ETH, grow POL
Key Benefits:
- Creates continuous buy pressure for TIDE
- Builds permanent, protocol-owned liquidity
- Maximizes TVL growth through stability pool incentives
- No mercenary liquidity mining needed
Phase 2: Transition Phase ($10M+ TVL)
Goal: Balance growth with operational sustainability
Once Harbor reaches ~$10M TVL:
- Treasury allocation introduced (declining over time to ≤5%)
- Remaining revenue maintains 75/25 split
- 75% to Stability Pool rewards
- 25% to POL building
- Harbor Treasury maintains ≥30% of TIDE supply
- If treasury dips below 30%, revenue temporarily redirected to rebuild reserves
- Ensures long-term sustainability and incentive capacity
Dynamic Treasury Take: The percentage retained by treasury is not fixed — it decreases as protocol matures, eventually reaching no more than 5% of monthly revenue.
Phase 3: Long-Term Value Accrual (Mature Protocol)
Goal: Deflationary tokenomics and sustainable value capture
Once POL reaches 15% of TIDE circulating supply:
- POL building pauses (target reached)
- 25% allocation switches to Buyback & Burn
- ≤5% to treasury operations
- ~75% continues to stability pool rewards
Buyback & Burn Mechanics:
- Protocol uses 25% of revenue to buy TIDE on open market
- Bought tokens are permanently burned
- TIDE becomes deflationary
- Token holders benefit from systematic supply reduction
If POL drops below 15% (due to liquidity incentives or market dynamics):
- Burns temporarily pause
- 25% allocation returns to POL building
- Once 15% restored, burns resume
Key Tokenomic Features
1. Points Phase Leading to Token Launch (12 Weeks)
- Points system during initial 12 weeks before token launch
- Reduces mercenary farming behavior
- Allows calibration of rewards based on real usage
- Builds committed community before token launch
- Flexibility to announce points-to-TIDE conversion strategically
2. Protocol-Owned Liquidity Strategy
Harbor prioritizes permanent liquidity over rented liquidity:
- Traditional liquidity mining is expensive and temporary
- Harbor builds its own liquidity using protocol revenue
- Target: 15% of circulating supply as protocol-owned
- Provides stability through market cycles
- Reduces long-term token dilution
3. Buyback & Burn Value Accrual
Long-term value capture mechanism:
- Systematic TIDE purchases from open market
- Permanent token burns reduce circulating supply
- Direct benefit to all token holders
- Scales with protocol revenue
- No reliance on external market makers
4. Team-Directed Incentives
Harbor uses team-controlled emissions rather than gauge voting:
- Enables rapid iteration and adjustment
- ROI-focused: every token emitted must drive growth
- Simpler than ve-tokenomics with bribes and gauges
- Maintains transparency through regular reporting
- Future transition to governance committee
5. Treasury Sustainability
- Harbor Treasury maintains ≥30% of total TIDE supply
- Provides warchest for incentives and growth
- Enables strategic partnerships and integrations
- If treasury dips below 30%, burns pause to rebuild
- Long-term sustainability without excessive dilution
Vesting Overview
Liquid at TGE
- veBAO airdrop: 5% (fully liquid)
- veFXN airdrop: 3% (fully liquid)
- Community sale: 1.5% (fully liquid)
- Harbor Treasury: 40.5% (strategic reserve)
- Bao Treasury: 25% (strategic reserve)
Vesting Schedules
- Founders & Core Team: 22% vested linearly over 5 years
- Booster Program: 3% distributed over 3 years (1% per year)
Comparison to Traditional Models
Traditional DeFi Token (e.g., Curve/Convex Model)
❌ Complex vote-escrow mechanics
❌ Gauge voting creates bribe markets
❌ Value leakage to intermediaries
❌ High token emissions for liquidity mining
❌ Mercenary capital leaves when rewards dry up
Harbor's Approach
✅ Simplified governance during growth phase
✅ Revenue funds permanent POL, not rented liquidity
✅ Buyback & burn directly benefits all holders
✅ Team-directed incentives optimize capital efficiency
✅ Transparent, ROI-focused emissions
Long-Term Vision
Harbor's tokenomics are designed to support the protocol through multiple phases:
- Bootstrap Phase (0-12 weeks): Points system builds real users
- Growth Phase (Launch to $10M TVL): 100% revenue reinvestment
- Transition Phase ($10M+ TVL): Treasury takes declining cut
- Mature Phase (15% POL reached): Buyback & burn activated
As Harbor evolves, the tokenomics naturally shift from aggressive growth to sustainable value capture, rewarding long-term holders while maintaining protocol health.