The THALES token is coming to Layer 2!
Like stepping through a doorway to another dimension, the THALES token is being transported to the futuristic world of Layer 2. On February 2nd (In one week!) your THALES tokens will be deployed on Optimism to participate in governance and stake for some especially stellar rewards.
While additional incentives are great we knew it would take something special to make this move a success so we will execute the migration of staked THALES, along with unclaimed staking rewards, directly to Layer 2. That means no unstaking or bridging. Stakers will be given a week to decide if they want to keep their staked THALES on Layer 1 and can opt out here. But why would you want to get left behind when the THALES token is going intergalactic and multi-layer?
Staked THALES Auto-Migration
This means that on February 2nd, assuming you haven’t opted out of the auto-migration at some point this week, any THALES still staked on Layer 1 will automatically migrate to Layer 2 along with any escrowed or vested THALES and any unclaimed staking rewards or LP staking rewards. Even THALES from the airdrop that haven’t been claimed yet will be auto-migrated. Stakers that do choose to opt-out will be able to unstake in just one minute instead of the standard 7 day cooldown, but this will require a message signature.
After much debate among the community and the Thales Council over how to complete this migration, it’s become apparent that we should make the process as easy as possible for the community. We wanted to cut out the costs of unstaking, claiming and bridging on Layer 1 so TIP-20 proposed to migrate staked and unclaimed THALES automatically. This was accepted by the Thales Council as the best way to complete the migration without burdening stakers.
Layer 2 Staking Rewards
To encourage the move to Layer 2 Thales will be increasing staking rewards on Optimism but with a twist. Staking THALES is now gamified, giving L2 stakers the opportunity to increase their rewards even more based on how they interact with the protocol (stay tuned for a detailed breakdown of gamified staking). Going forward all staking rewards will only be distributed on Layer 2. And as promised, THALES rewards for both rounds of AMM trading volume will be distributed on Optimism.
THALES Liquidity Incentives
Providing THALES liquidity on Optimism will also be incentivized. On launch day we’ll use Gelato to initiate a THALES/ETH Uniswap V3 pool with an infinite range and no manager, making the pool completely immutable and secure against any attempts at manipulation. This pool will provide liquidity mining rewards of 35,000 THALES per week for 10 weeks, with any future rewards in the shrewd hands of the Thales Council. You can read TIP-23 for a more detailed explanation.
Migration for unstaked THALES from L1 to L2
We’ve also created a process for anyone still holding THALES tokens on Layer 1 to get them over to Layer 2. We don’t blame you for waiting to stake to avoid gas fees so once the token is available on Layer 2 we’ll provide an tool to migrate your THALES before staking on Optimism for a fraction of the L1 gas fees. And any staker that is auto-migrated to Optimism but doesn’t have ETH on the network will receive $10 in ETH airdropped to their wallet. We really want to make this process as easy as possible for stakers.
A number of TIPs had to be crafted by the community and approved by the Thales Council to make this launch possible. Many platforms struggle to achieve consistent participation in governance so this level of decentralized and transparent coordination by the Thales community is really remarkable.
If you’ve been following Thales Markets through 2021 you won’t be surprised to hear that more updates are on the way, including bonding and of course custom sports markets. So get your THALES tokens over to Optimism and get them staked. While you’re doing that, we’ll keep finding new ways to make DeFi fun.