A brief analysis of the TNSR token economic model. Can it continue the wealth-making miracle on Solana?

2024-04-09 12:18

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Original title: "A Brief Analysis of Tensor: Can TNSR Continue the Wealth-Making Miracle of Solana Ecosystem?"

Original author: Azuma, Odaily Planet Daily

On the evening of April 8, Beijing time, Tensor, the leading NFT trading platform in the Solana ecosystem, officially launched its governance token TNSR.

On the first day of TGE, TNSR landed on many mainstream exchanges such as Binance, OKX, and Coinbase. OKX market data shows that TNSR once reached a high of 2.6 USDT after it went online, and as of the time of posting, it was temporarily reported at 1.72 USDT.

Solana version of Blur?

The official launch of Tensor can be traced back to July 2022.

In March 2023, Tensor completed a $3 million financing round led by Placeholder, with participation from Solana Ventures, Alliance DAO, Big Brain Holdings, and Solana's two co-founders Anatoly Yakovenko and Raj Gokal.

In the same month, Tensor launched three rounds of incentive activities (Seasons 1, 2, and 3). First, in Seasons 1, all active NFT trading users in the Solana ecosystem were issued "treasure chest" rewards with airdrop expectations, and then in Seasons 2 and 3, users who bid, list, and make markets on the Tensor platform were provided with the same "treasure chest" incentives.

Obviously, this approach largely imitates Blur, a similar project on the Ethereum ecosystem. Tensor is not shy about this. In an interview with Tech Crunch, Tensor co-founder Ilja Moisejevs said: "We and Blur are two similar but different platforms."

Just as Blur gradually eroded OpenSea's market share in the Ethereum ecosystem, Tensor has also achieved a latecomer in terms of transaction volume in the Solana ecosystem. Flipside data shows that Tensor is now the NFT market with the largest transaction volume in the Solana ecosystem, and even occupied 70% of the market share in the ecosystem for a long time.

A Brief Analysis of TNSR Token Economic Model

At the same time as TGE, Tensor also announced an overview of TNSR’s token economic model. In short, the utility of TNSR is mainly for protocol governance. The total supply of the token is 1 billion, and the initial distribution is as follows: 550 million (55%) TNSR are allocated to the community, of which 12.5% are the initial airdrops, and the remaining 42.5% will be used for incentive programs, liquidity supply, and Grant activities that benefit the Tensor ecosystem; 270 million (27%) TNSR are allocated to core contributors. This portion of the shares will be locked for one year and then released linearly over the next three years; 90 million (9%) TNSR are allocated to investors and consultants. This portion of the shares will be locked for one year and then released linearly over the next three years; 90 million (9%) TNSR are allocated to investors and consultants. This portion of the shares will be locked for one year and then released linearly over the next three years; Ten thousand (9%) TNSR for future fundraising and development reserves.

Odaily Note: TNSR Distribution

Odaily Note: TNSR Unlocking and Circulation

Tensor did not introduce much about the specific design of the airdrop, but only mentioned that "users who help the development of the Tensor protocol and Tensorians holders are eligible for airdrops" and "the amount of airdrops that users can receive is proportional to their use of the Tensor protocol in Seasons 1, 2, and 3."

Within 180 days from the start of the airdrop, eligible addresses can claim airdrop rewards at any time on the Tenser Foundation official website. According to community feedback, Tensor will issue at least 420 TNSR in this airdrop, which means that even low-income people will have a considerable income of at least hundreds of dollars.

Can TNSR continue to create wealth?

With the rising popularity of Solana ecosystem and the market's expectations for the ecological project, many leading Solana ecological projects that have issued tokens in the past few months have achieved excellent secondary market performance.

Among them, Jito (JTO) in the LSD track and Jupiter (JUP) in the DeFi track still have a certain gap in terms of flowing market value (MC) compared with the leading projects in the Ethereum ecosystem, but the full circulation valuation FDV has surpassed them. The specific comparison is as follows:

Odaily Note: TNSR's MC data is taken from Coinmarketcap, and other data are taken from CoinGecko.

As shown in the above figure, TNSR, as another leading project in the Solana ecosystem, has basically continued the trend characteristics of JTO and JUP's "relatively low MC and relatively high FDV" at the opening. If the convention of "FDV can surpass the Ethereum leader" above JTO and JUP is applied, TNSR seems to have some room for upward movement.

Finally, it should be emphasized that this is not and should not be regarded as an investment basis. First, because the convention does not have a clear logical support, and second, because NFT is not a current narrative hotspot, which also makes the future trend of TNSR more uncertain.