Tokenomics

TOPAZ & Emissions

TOPAZ is the protocol's ERC-20 token. This page covers initial allocation, the emission curve, where new TOPAZ is minted, and the rebase mechanism that auto-compounds into veTOPAZ locks.

TOPAZ at a glance

TOPAZ is the protocol token, deployed on BNB Chain. It serves three purposes:

✓Governance — locked as veTOPAZ to vote on gauge emissions and protocol parameters.
✓Yield — locked veTOPAZ earns trading fees, bribes, and weekly rebases.
✓Incentive flow — emissions flow to LPs in pools that voters choose, providing the protocol's structural LP yield.

The TOPAZ contract address is on the Contracts page. Once deployed, the only way new TOPAZ enters circulation is via the Minter contract's weekly emission — no admin mint, no hidden allocations.

Initial allocation

50M

Liquid TOPAZ

Freely transferable tokens distributed at launch to seed initial liquidity and bootstrap the ecosystem.

250M

Protocol Foundation & Team veTOPAZ

Locked as veTOPAZ with a 4-year lock. Used for protocol governance, strategic voting, and long-term alignment.

200M

Airdrop & Sacrifice veTOPAZ

Distributed as locked veTOPAZ to sacrifice participants and airdrop recipients. Ensures early supporters have governance power from day one.

ℹInitial supply is the only mint outside emissions

The 500M initial supply was minted at launch — 50M as liquid TOPAZ for initial liquidity, the rest as locked veTOPAZ for the airdrop, sacrifice, and foundation / team. Every TOPAZ added to circulation after that enters via the Minter's weekly emission. No hidden allocations, no later top-ups.

The emission curve

The Minter contract issues TOPAZ once per epoch (one week). The curve runs in three phases, each governed by an on-chain constant:

Phase 1: Growth (Weeks 1–14)

Starting at 10M TOPAZ per week, emissions grow 3% each week to bootstrap liquidity and attract early LPs. Peak emission of ~15.13M TOPAZ at epoch 15.

Phase 2: Decay (Weeks 15+)

Emissions decay 1% per week from the peak, gradually reducing inflation as the protocol matures and fee revenue grows. Runs until weekly emissions cross below the TAIL_START threshold.

Phase 3: Tail Emissions

Once weekly emissions fall below 8,969,150 TOPAZ, the protocol transitions to a percentage-of-supply model (initially 0.67% per epoch). EpochGovernor can nudge this rate ±0.01 percentage points per epoch, bounded at 0.01% – 1% per epoch.

Parameter	Value	Description
Starting weekly emission	10,000,000 TOPAZ	Minter.weekly initialized at deployment.
WEEKLY_GROWTH	+3% per epoch	Applied for epochs 1–14 (growth phase).
WEEKLY_DECAY	−1% per epoch	Applied from epoch 15 onward.
Peak emission	~15,125,897 TOPAZ	Epoch 15 — the high point of the curve.
TAIL_START	8,969,150 TOPAZ	Threshold at which decay stops and tail emissions activate.
Initial tail rate	0.67% per epoch	Of total supply. Per-epoch, not annualized.
Tail rate bounds	0.01% – 1% per epoch	Enforced at the Minter contract.
EpochGovernor NUDGE	±0.01 pp / epoch	Maximum tail-rate change per epoch via plurality vote.
Team rate	5% of emissions	Hard-capped at 5% in the Minter and configurable down to 0%. Routed to the protocol multisig.

⚠Tail rate is per-epoch, not annual

The 0.67% initial tail rate is the share of total supply minted each epoch, not each year. Compounded weekly that's a higher annualized issuance — by design. EpochGovernor lets voters nudge it down to 0.01% per epoch over time as TVL and fee revenue mature.

Where emissions flow

Each epoch's newly minted TOPAZ is split four ways:

✓Gauge emissions — the main flow. Routed to Voter, which then distributes to individual gauges based on epoch-n vote share. LPs in those gauges earn this.
✓Rebases — additional TOPAZ scaled by locked_ratio³ and sent to RewardsDistributor for veTOPAZ holders to claim. Auto-compounds into active locks, pays out as liquid TOPAZ for expired locks.
✓Team rate — up to 5% of the combined gauge + rebase amount, routed to the protocol multisig. The rate is hard-capped at 5% in the Minter, so it can be lowered but never raised beyond that.

The rebase math

Rebases offset part of the emission dilution for users who lock. The formula scales with the cube of the locked share: the deeper protocol-wide lock participation is, the larger the slice of each epoch's emission that flows back to veTOPAZ holders.

locked_ratio = veTOPAZ totalSupply / TOPAZ totalSupply

rebase = emission × locked_ratio³ / 2

veTOPAZ totalSupply is voting power measured at the start of the epoch, not raw locked TOPAZ — decaying locks count for less as they approach expiry, permanent locks always count at full weight.

✓If veTOPAZ is 50% of supply: rebase = emission × 0.125 / 2 = emission × 0.0625. ~6.25% of the epoch's emission goes out as rebase.
✓If veTOPAZ is 80% of supply: rebase = emission × 0.512 / 2 = emission × 0.256. ~25.6% rebases — deep lock participation earns proportionally more.
✓If veTOPAZ is 20% of supply: rebase = emission × 0.008 / 2 = emission × 0.004. ~0.4% rebases — shallow participation earns very little.

The cube makes the rebase a participation reward rather than a bootstrap subsidy: it is negligible while little is locked and rises steeply as lock participation deepens, capped at half the epoch's emission when every TOPAZ is locked at full weight. For a position at full weight, the rebase offsets locked_ratio² / 2of that epoch's dilution — 12.5% of it at 50% participation, 32% at 80%, 50% at the ceiling. The rest of the case for locking is voting power, trading fees, and bribes.

What veTOPAZ earns annually

A holder's annualized TOPAZ-denominated yield from veTOPAZ comes from three streams: trading fees (variable, depends on which pools you vote for), bribes (variable, depends on the market), and rebases (predictable from the formula above). Putting precise numbers on the first two isn't useful — they move with usage. But rebases plus a representative blend of fees and bribes have historically delivered double-digit TOPAZ-denominated APRs on ve(3,3) systems in healthy markets.