- Tornado.cash has posted a plan to launch a new governance token, TORN.
- TORN would be airdropped to previous Tornado.cash users, enabling them to make changes to the protocol.
- Initiation depends on the Tornado.cash community adopting the proposal.
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Tornado.cash has suggested the launch of a native token in a new governance proposal. The plan involves airdropping tokens to Tornado.cash users to hand over control of the protocol.
Tornado.cash Outlines TORN Token
Tornado.cash, the most used privacy solution on Ethereum, plans to launch a governance token. The protocol creators have posted a governance proposal detailing an airdrop and use cases for the token.
TORN would be sent to anyone who used Tornado.cash before block 11400000 on Ethereum, which fell on Dec. 6.
The airdrop would only be 5% of TORN’s total supply; the rest would be unlocked in the years following. 55% of the total 10 million supply would go to a DAO treasury, to be unlocked over the next 5 years.
Founding developers and early supporters would earn 30%, unlocked over 3 years.
The token would be airdropped to users in the form of a redeemable vTORN voucher. The amount that users would receive depends on the amount of ETH they’ve deposited to the Tornado.cash contracts. It has been calculated using a logarithmic multiplier.
The token release will hand off the protocol’s governance to its early adopters. Users will be able to vote by locking TORN into a governance contract, though the proposal suggests that they’ll need at least 1,000 to participate. Voting periods for proposals would last for three days and require a minimum of 25,000 TORN total votes.
The plan would enable users to make changes to Tornado.cash as they deem fit, “including completely upgrading its implementation.”
It’s a way of increasing decentralization while still maintaining Tornado.cash’s privacy-preserving ideals.
“Anonymity Mining” Mechanism
If the community adopts the proposal, tokens would also be distributed to future users of Tornado.cash. They’d be allocated via a process the team has called “anonymity mining,” not unlike the liquidity mining strategies employed by other DeFi protocols.
Users would earn Anonymity Points for making deposits in Tornado.cash, which would go into a shielded account that conceals the user’s address and balance. The Anonymity Points can then be converted using Tornado.cash’s own Automated Market Maker (AMM). 10% of the total supply would be available to anonymity miners.
The team notes that the token release is only a governance proposal at the moment: it won’t launch unless the community adopts it.
But if Tornado.cash users accept the proposal, TORN will likely launch soon.
The code has been published and audited by ABDK, Pessimistic, and Zeropool.network. It can be found on the Tornado.cash Github.
Disclosure: At the time of writing, the author of this feature owned ETH among a number of other cryptocurrencies.
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