TAO

TAO is the secondary token issued by the ZolTAO protocol, designed to capture the fee revenue generated by the system and incentivize early adopters. This document provides a comprehensive overview of the TAO token, its features, use cases, and distribution schedule.

Key Features of TAO Token:

1. Incentivizes Stability Providers and Liquidity Providers: TAO rewards accrue only to Stability Providers (users who deposit dCNY into the Stability Pool) and liquidity providers of the dCNY:ETH pool on Uniswap. These rewards are based on the preprogrammed functionality of the protocol and do not rely on claims towards ZolTAO or any third party.

2. Max Supply: TAO has a maximum supply of 100,000,000 tokens, ensuring a finite and controlled token circulation.

3. Limited Governance Token: While TAO is a governance token, its scope is limited to maintaining and developing the protocol ecosystem. The core protocol remains immutable and un-upgradable. TAO holders have the right to vote on proposals that contribute to the ecosystem's growth and development. For more information on governance, please see the governance section.

How to Earn TAO:

1. Stability Pool: Users can earn TAO by depositing dCNY into the Stability Pool, contributing to the stability of the ZolTAO protocol.

2. Liquidity Provision: TAO can also be earned by providing liquidity to the dCNY:ETH Uniswap pool, further enhancing the liquidity and stability of the dCNY token.

Uses of TAO:

1. Staking: TAO holders can stake their tokens to earn the fees generated by loan issuance and dCNY redemptions. For more information on staking, please refer to the staking guide.

2. Governance: TAO holders can participate in the governance process, voting on proposals that aim to maintain and develop the protocol ecosystem. The core protocol, however, remains immutable and un-upgradable. Please see the governance section for more details.

TAO Distribution Schedule:

Detailed information on TAO's Emission Schedule can be found in the Emissions section.

TAO's Kaishi Allocations:

Detailed information on TAO's Kaishi allocations can be found in the Kaishi section.

TAO token plays a vital role in the ZolTAO protocol by incentivizing early adopters, Stability Providers, and Liquidity Providers. Its finite supply and distribution schedule ensure a controlled and sustainable token economy. TAO's limited governance functionality allows holders to vote on proposals that contribute to the growth and development of the protocol ecosystem, while the core protocol remains immutable and un-upgradable. This combination of utility and governance makes TAO attractive for users participating in the ZolTAO ecosystem.