$TS Token

$TS (Tonswap Token) is the reward token for LPs on Tonswap🔗

TL;DR🔗

• There will be at most ever 100 million TS tokens, and 70 million will be distributed at launch
• Each swap on Tonswap charges 0.3% of the transaction in fees and these fees go to buy-back-and-burn $TS
• Additionally, the integrated launchpad collects fees which are also used to buy-back-and-burn $TS
• Everyday, 90% of the burned $TS will be re-minted and 10% will be permanently burned
• 90% of the re-minted $TS goes to: 70% to LPs for rewards, 10% to Tonswap DAO Treasury to pay for ongoing protocol development, and 10% to buy-back-and-burn XOR

Tonswap Tokenomics: A Deflationary Model for Sustainable Liquidity Rewards🔗

Tonswap’s tokenomics are engineered to align incentives with platform growth while ensuring long-term sustainability. At the heart of this design is the $TS token (Tonswap Token), which serves as the reward token for liquidity providers (LPs) on the Tonswap DEX. Unlike many yield-farming tokens that rely on perpetual inflation, $TS employs a “buy-back-and-burn” to guarantee strictly deflationary total supply. This means that trading activity on Tonswap directly fuels $TS rewards and token burns, creating a dynamic that benefits LPs and the overall ecosystem.

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Swap Fees Fuel Buy-Back-and-Burn🔗

Every swap on Tonswap carries a 0.3% trading fee, similar to other DEXs like Uniswap. However, Tonswap understands the importance of enabling network effects and puts the fees to work to support $TS’s value and thus the ecosystem. Fees are paid by traders in the input token they swap and are automatically used to buy $TS from the market, which is then burned. This buy-back-and-burn approach means that every trade creates buy pressure on $TS and then permanently removes some tokens from circulation. At the start, there will be 100 million $TS tokens, with 70 million distributed at launch and 30 million used for post-launch liquidity incentives. Because the supply will be burned from the first transaction on Tonswap, these tokenomics are great for a combined DEX + integrated launchpad for DeFi because the daily reduction in supply, sets clear expectations for the ecosystem.

This mechanism resembles Polkaswap’s fee model, where swap fees (paid in XOR on the SORA Polkadot network) are converted to the DEX token (PSWAP) and instantly burned. However, Tonswap improves on this model by always burning a fixed amount daily (10%) and using part of the re-mint for a sustainable development treasury, rather than vesting rewards like Polkaswap did. This means that the deflationary mechanics kick in instantly and there is no long-term vesting of tokens for people who are not actively contributing, which was a problem in the Polkaswap model.

Over time, as trading volume grows, this could create significant deflationary pressure on $TS, making the token more scarce and desirable, which would further incentivize more liquidity and which would reinforce stronger trading volumes.

Tonswap $TS Token Daily Burn and Re-Mint Cycle

Integrated Launchpad Burn Mechanism🔗

It’s important to remember that Tonswap isn’t just a DEX, but also features an integrated launchpad for new tokens. The launchpad provides a platform for projects to raise liquidity and launch on TON, and it comes with its own fee structure. Fees collected from launchpad events are also funneled into buying back and burning $TS. This means every token sale or initial DEX offering on Tonswap’s launchpad contributes to $TS deflation in the same way swaps do. Pump.fun raised more than $700 mil in fees and by integrating with the TONSWAP DEX natively, we aim to replicate this success on TON.

By extending the buy-back-and-burn model to launchpad activities, Tonswap ensures that all facets of the platform’s usage drive value to $TS. While some of the launchpad fees will also be used to power a still-secret incentives program, most will go to buy back and burn $TS. Whether it’s regular trading or participating in a new token launch, a portion of the activity is redirected to supporting $TS via buybacks and reducing its supply via burns. This creates a holistic ecosystem incentive: as Tonswap attracts more projects and traders, $TS holders and LPs can enjoy the rewards through increased buybacks.

Daily Burn and Re-Mint Cycle🔗

A key innovation in Tonswap’s tokenomics is how it handles the $TS tokens that have been bought and burned from fees. Tonswap employs a daily burn-and-mint cycle to reward participants while still keeping $TS deflationary. Here’s how it works:

• Accumulate & Burn: Throughout each day, all swap fees (and launchpad fees) are collected and used periodically to purchase $TS which is immediately burned. This results in a running tally of how many $TS were burned that day due to protocol activity.
• Daily Snapshot: At the end of each day, Tonswap takes note of the total number of $TS tokens that were burned via fees in the last 24 hours.
• Re-Mint a Portion: 90% of that daily burned amount is re-minted as new $TS tokens, while the remaining 10% stays burned forever. In other words, for every 100 $TS burned from fees, only 90 $TS are created anew, so 10% of the burned amount is the net reduction in the $TS total supply each day. This ensures $TS remains deflationary (more tokens are destroyed than created).
• Distribution of Rewards: The re-minted $TS are not given to a single party, but rather distributed to serve the Tonswap community and ecosystem (detailed in the next section).

This daily cycle is crucial because it creates a positive feedback loop: higher trading volumes lead to more fees, which lead to more $TS burned, which in turn incentivizes more LP, which leads to higher trading volumes, more fees, etc.

Reward Distribution: LPs, DAO Treasury, and XOR Burn🔗

The re-minted $TS from the daily cycle doesn’t all go to one place! Tonswap splits these tokens to benefit different stakeholders and ensure the platform’s long-term viability and sustainability. The 90% of $TS that are re-minted each day (from the burned amount) are allocated as follows:

• Liquidity Providers (70%) — The majority of re-minted tokens go to the liquidity providers on Tonswap as yield rewards. LPs are the backbone of the DEX, supplying the pools that enable trading. By awarding them 70% of the daily $TS burned amount, Tonswap incentivizes boundless liquidity on the exchange.
• Tonswap DAO Treasury (10%) — Ten percent of the re-minted $TS goes to the Tonswap DAO’s treasury. This is a fund reserved for ongoing protocol development, maintenance, and community initiatives. By allocating 10% of emissions here, Tonswap ensures it has a self-sustaining funding mechanism for future upgrades, marketing, audits, and other needs.
• XOR Buyback-and-Burn (10%) — SORA aims to create a new world economic order built around the XOR token, aiming to fund producers globally and lead to a better life for all of us. To help purse the goal of a better world, the final 10% of re-minted $TS is used to buy XOR (the native token of the SORA network) and then burn that XOR. In addition to improving the future of humanity, this is a strategic way to bring in the ultra-based SORA community an ecosystem, which is also working on building a supranational Hub Chain for governments and central banks.

By distributing the re-minted tokens in this 70/10/10 ratio, Tonswap covers all bases: reward the liquidity providers, fund the project’s future, and reinforce and build a broader ecosystem (SORA). All of these allocations come out of the 90% re-minted portion, meaning they are funded by the protocol’s own economic activity (fees), not inflation. And remember — the remaining 10% of burned $TS each day is not coming back. Those tokens are gone for good, ensuring a net reduction.

Deflationary Incentives and Governance Utility🔗

$TS isn’t just a reward token — it also has governance and utility features consistent with modern crypto tokenomics. $TS will confer governance rights to holders so they can vote on protocol parameters, pool incentives, and generally run Tonswap.org as a DAO. This adds further incentive to holding $TS beyond just selling farming rewards.

Conclusion🔗

In summary, Tonswap’s tokenomics are crafted to bootstrap liquidity and volume on the DEX while avoiding the pitfalls of inflationary farming. The combination of buy-back-and-burn fees, a controlled daily re-minting tied to real usage, and a smart distribution of those rewards (70% LPs, 10% treasury, 10% XOR burn) makes $TS a unique token that embodies sustainable DeFi principles. Every participant in the Tonswap ecosystem has aligned interests:

• Traders get a seamless, low-fee swap experience on TON (with the comfort that fees are reinvested into the ecosystem’s growth).
• Liquidity providers earn competitive rewards that scale with actual trading activity, and benefit from the deflationary nature of $TS.
• Tonswap secures ongoing and sustainable funding for development via the DAO allocation, without external dependencies or hurting token holders.
• The SORA network (XOR holders) benefits from Tonswap’s success through the XOR buyback-and-burn, strengthening the partnership between the two chains, while all of humanity benefits from the success of SORA.

Tonswap is turning DeFi activity into a cycle of value creation for its stakeholders and ecosystem. By leveraging a tokenomics design pioneered by Polkaswap and adding its own twist with the launchpad and XOR burn integration, Tonswap is poised to offer a sustainable farming incentive that can attract liquidity and traders in a big way. In an era where many DEX tokens struggle with hyperinflation, $TS stands out as a token engineered for long-term value, community governance, and SORA synergy.

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The $TS token is more than just a reward — it’s the glue that connects usage with benefits, and even links two blockchain ecosystems (TON and SORA) together. If you’re a based DeFi user looking for yield opportunities on TON, pay attention to $TS and Tonswap’s progress as we gear up to launch in a few short months. It just might set the new standard for how DEX incentives are done: transparent, deflationary, and built for mass adoption on TON.

Disclaimer: Cryptocurrency trading involves significant risk and volatility. This article is for informational purposes and does not constitute financial advice. Past performance of any token or network (including TON or SORA) is not indicative of future results. Always do your own research and consider your risk tolerance before participating in DeFi or trading. Use TONSWAP and related financial tools responsibly, and consult with a financial advisor if you have any concerns. Keep in mind that while TONSWAP and the TON network offer advanced features and integrations, there are always risks in smart contract platforms, so never trade or provide liquidity with funds you cannot afford to lose.