Use FUSE In Place of Airdrop for Nozomi Legion Corrective Token Allocation

Summary

Changing from an airdrop to FUSE for the issuance of 40.8 million TEN corrective allocation granted to participants in the TEN Community Round is the best approach to achieving:

• Token sustainability
• Token growth
• Holder security due to FUSE’s in-built dump protection design

Motivation & Alignment

Following a challenging TGE for the TEN token, to demonstrate the project’s commitment to a meaningful section of the TEN community, a corrective allocation was granted for participants in the TEN Community Round conducted through @NozomiNetwork on nozomi.legion.cc. This allocation recognised the token launch conditions created a pricing environment that did not reflect the intended basis for early supporters.

Under a corrective allocation available to the 930 participants in the TEN Community Round, just under 40.8 million TEN tokens, or 4.08% of the total token supply, will unlock over 6 months. What has become clear since this corrective action was taken is that without an orderly issuance mechanism, the market is not in a position to absorb this quantity of tokens without significant shock and harm to the project.

This proposal puts forward an alternative issuance mechanism, called FUSE, to be used for this corrective allocation.

Key Details

FUSE is designed to align every stakeholder and smooth out supply unlock shocks by acting like a stabilization agent. In traditional finance this stabilization agent is a broker, but here the FUSE protocol acts like a broker: instead of releasing tokens into a chaotic free-for-all, FUSE uses a structured, predictable, and user-controlled model. See fuse.ten.xyz for a video explainer, IQ40 overview and full whitepaper.

Exits are orderly, not dumps TEN tokens prepared for issuance through FUSE have transfer logic applied so you can only sell them either i) to a buyer who might choose to convert them into regular TEN tokens, or ii) sold OTC with the same transfer logic intact. This transfer logic intentionally prevents dumping. Instead, exits are driven by market demand.

Flywheel drives demand in the secondary market Buyers of tokens submitted to a FUSE Auction are required to buy 15% of their intended purchase in TEN from CEXs / DEXs before making the purchase on the FUSE platform. This closes the flywheel loop and could drive demand to the token.

A “Soft Floor” is created by principal protection If the market price dips below the FUSE Auction price, rational holders don't panic-sell on the open market. Instead, they "quietly" redeem against the protocol's reserves. This off-market exit removes supply without touching the order book and eliminates the "race to the bottom".

Sticky incentives to hodl Buyers are mathematically discouraged from "flipping" for a small profit. They will only sell if the market price appreciates enough to justify losing the safety net of the redemption. This naturally throttles sell pressure.

Implementation

Voting on this proposal is only available to participants in the TEN Community Round conducted through @NozomiNetwork who held at least 1 TEN token in their wallet on 29th Dec 2025, 10.10 UTC.

Implementation of this proposal is only relevant to participants in the TEN Community Round conducted through @NozomiNetwork.

The first FUSE Auction will be set at a token price of $0.03. If you are comfortable with that price you can commit some or all of your FUSE-ready tokens to the auction. You are also free to wait for a differently priced FUSE Auction in the future.

The first FUSE Auction will be limited to 6,666,666 tokens to reduce the financial and operational risk for the first live auction. Joining the auction will be done on a first-come-first-served basis.

To prepare your wallet for FUSE-ready tokens, go to the Activation page and connect the same wallet used for the TEN Community Round. Click “Activate”.

To submit your FUSE-ready tokens into the issuance round go to fuse.ten.xyz and connect the same FUSE-activated wallet. Click “Launch App” to see the active FUSE Auction. Contribute some or all of your FUSE-ready tokens to the auction (you can contribute your remaining tokens to a later FUSE Auction if there is one).

The FUSE Auction will run for 10 days. When the FUSE Auction ends you will be able to see on the FUSE platform the number of your tokens held by buyers and the number of your tokens sold outright.

Risks

Tokens under the correction allocation which are issued using FUSE can only be sold using one of two circumstances:

1. Through a FUSE Auction, or
2. OTC sale to buyers who inherit the same transfer logic, i.e. sell through a FUSE Auction or sell using OTC.

FUSE intentionally facilitates the sale of tokens based on market demand not simply because there is a market to sell into (“dump”). As a result there is no guarantee tokens submitted to FUSE will sell. Unsold tokens can be contributed to a later FUSE Auction.

Buyers of tokens submitted to a FUSE Auction are required to buy 15% of their intended purchase in TEN from CEXs / DEXs before making the purchase on the FUSE platform. This could create friction to taking part in the auction. To mitigate this, TEN is freely available to purchase on KuCoin, Gate, MEXC, BingX and Uniswap.

Timing

30th Dec 2025 to 3rd Jan 2026: discussion of this proposal on TEN’s Discord 3rd Jan 2026 to 8th Jan 2026: voting for this proposal on Snapshot.

Voting Options

Yes, use FUSE as the issuance mechanism for the corrective allocation of tokens. This is the default outcome if you do not vote. No, distribute the corrective allocation of tokens as an airdrop vesting monthly over a 6 month period.

Discussion

Discussions on this proposal take place on TEN Discord server governance channel.

Terms

FUSE. An issuance platform designed to replace vesting, align every stakeholder, and smooth supply over time without hidden unlocks or unpredictable dilution. FUSE stands for Fair Unlock and Secured Emissions.

FUSE Auction. The mechanism through which FUSE-ready tokens are sold.

Gating mechanism: FUSE Auction buyers are gated from participating by a requirement to hold 15% of their intended purchase quantity.