Pair AKT with TERP & THIOL

An Akash governance proposal by Terp Network, 2026-10-10. Pool figures are dated 2026-10-21 and AKT amounts use the 2026-10-19 price (pool base snapshot 2026-10-06); the on-chain spend message carries the exact uakt amounts. Figures marked illustration only show scale. The TERP/THIOL floor (TERP $0.05534 / THIOL $0.0261) is a baseline for coordinating the initial allocation, not a market price.

Summary

The risk, first. About 194,665 AKT (5.79% of the pool's AKT) goes into liquidity positions and is at risk: impermanent loss, arbitrage leakage, and the program both buying and selling AKT. Operations is about 10,510 AKT (0.31%). Net AKT leakage from the arbitrage reserve and rebalancing is hard-capped, and a drawdown trigger pauses trading automatically.

Why it is worth it. The pool's TERP and THIOL cannot be carried to Akash's new chain; left where they are, they are unrecoverable. Pairing an unrecoverable asset with a modest, monitored AKT commitment is a reasonable bet on creating a market where none exists.

Akash's community pool holds 2,100,000 TERP and 2,846,700 THIOL (THIOL was formerly called PERSY). Terp governance sent them as a gift in 2023, and they have been idle since. They are valued at $190,512.87 at the floor price Terp Network published (TERP $0.05534, THIOL $0.0261); no market price exists for either token yet. The pool also holds about 3.36M AKT (2026-10-21, after proposals #342–#345 passed).

Akash is preparing to leave its Cosmos chain (AEP-79). IBC tokens like this TERP/THIOL cannot be carried over to the new chain, and at the end of the migration the community pool moves into a DAO treasury on the new chain, governed there. A community-pool spend of these TERP/THIOL therefore has to happen on the current chain, before the migration.

This proposal allocates the TERP, THIOL and pairing AKT now and holds them for Akash in custody: the 3-of-4 Akash multisig on Akash, and a custody subDAO on Terp whose member signs that multisig. Staged deployment. 50% of the pairing AKT (about 97,333 AKT), with its TERP/THIOL pairing, is deployed as soon as the Akash ↔ Terp IBC connection is restored, before the AEP-79 migration: its timeline is uncertain, and we want the markets working now. The other 50% (about 97,333 AKT) is reserved and not used until after the migration: it stays in the Akash multisig so its signers can claim new-chain AKT directly at the snapshot. TERP and THIOL move home to Terp custody straight away. After the claim, the reserved AKT joins Terp custody and is deployed with the remaining TERP/THIOL, and liquidity and positions are rotated in stages for effective use. While the AEP-79 migration runs, the Akash multisig signers (3-of-4: returniflost, piber, the Akash community seat (open) and a fourth seat (open)) handle the AKT in pools, so active community participants have a voice before the custody DAO committee takes over.

It asks for two AKT lines, set in USD: pairing AKT equal to 70% of the TERP/THIOL floor value (~$133.4k) and $7,200 for 36 months of operations from first deployment. At 2026-10-19 prices (AKT $0.685069) that is about 205,175 AKT, 6.11% of the pool's AKT (3,359,962 AKT on 2026-10-21, after proposals #342–#345 passed).

Privacy-preserving research on Akash's reserve marketplace is a separate proposal: Private Payments for Akash's Reserve Marketplace.

Why

Why now

Akash is migrating off its Cosmos chain under AEP-79. IBC tokens such as this TERP and THIOL cannot be carried to the new chain (05 §7.4), and at the end of the migration the community pool becomes a DAO treasury governed on the new chain (§10). A community-pool spend of these tokens therefore has to happen on the current chain, before the migration. The allocation happens now; 50% of the pairing AKT is deployed now with its TERP/THIOL pairing, and the other 50% is reserved until after the migration (details in The migration in detail).

Why Akash should support it

• Terp Network is part of the Akash community. We run Terp's network RPC and sentry nodes on Akash providers, contribute to Cosmos Omnibus, and maintain our own Rust client library for the deployment bid lifecycle.
• It serves Akash's priority. Akash is scaling to where its markets are accessible, beyond its sovereign L1. Third-party stewardship that deploys AKT liquidity into more DEXs works toward that, in the same direction as proposal #342, which broadens the venues where AKT is quoted. It also opens direct opportunities for Akash community members, starting with a custody seat and the seats on the parent veto DAO.
• The risk is real, and bounded. The pairing AKT (5.79% of the pool) goes into LPs and is at risk: impermanent loss, arbitrage leakage, and AKT both bought and sold. Operations is about 0.31%. A hard cap on net AKT leakage and a drawdown auto-pause bound the downside. In return, TERP and THIOL that would otherwise be lost to the migration become a market, held for Akash and returned as Akash governance directs on unwind.
• It can be checked, not just trusted. A 3-of-4 Akash multisig with an Akash community seat, a parent veto DAO without Terp on it, monthly public reports, published Penumbra viewing keys, and Akash members on the parent veto DAO with a veto over every custody proposal.
• It complements Akash's privacy work. Akash is funding confidential computing (TEE via Kata Containers, AEP-83, in proposal #333). Our separate research proposal, Private Payments for Akash's Reserve Marketplace, studies the payment side of the same goal.

If this proposal does not pass

The 2,100,000 TERP and 2,846,700 THIOL stay in Akash's community pool. Terp Network will not coordinate their retrieval, and expects that supply to stay out of circulation permanently (as IBC tokens, they cannot be carried to Akash's new chain), as has happened with the TERP and THIOL allocations gifted to Stargaze, Osmosis, OmniFlix and Evmos. That is the outcome this proposal is meant to avoid.

The ask (what Akash governance is voting on)

A YES vote approves all of the following:

1. A community-pool spend to the Akash multisig (its signers and address are published before the vote), which may use the funds only under the mandate below, of:
   • 2,100,000 TERP (ibc/C716B1F3652237C4B4AA7D600FD841B8C160AE10982D4BD8126125F54303DEA9);
   • 2,846,700 THIOL (ibc/518135424C702F65319C4A5DC1102D868BFDB62CEE78648E51B4712A3D4A7296);
   • Pairing AKT: USD value equal to 70% of the TERP/THIOL floor value.
   • Floor value = 2,100,000 × $0.05534 + 2,846,700 × $0.0261 = $190,512.87; 70% of it = $133,359.01.
   • AKT quantity = $133,359.01 / P_AKT at the price used for the spend message.
   • The other ~30% of the TERP and THIOL has no 1:1 AKT cover and is paired TERP/THIOL (see Three pairs).
   • Operations AKT: $7,200 USD worth of AKT (= $7,200 / P_AKT; $200/month × 36 months, starting at first deployment).
2. The mandate, which binds every custodian: path, guardrails, decision rights, lifecycle to 2030, reporting and exit rules (sections below). Under it, the TERP, THIOL and AKT are held for Akash: they are used only as this proposal sets out, reported monthly, and returned as Akash governance directs on unwind.
3. The path in five steps, numbered 0 to 4 (next section).
4. The custody structure: the Akash multisig receives the spend on akashnet-2. On Terp, the custody subDAO's only member is returniflost (co-founder of Terp Network), who also signs the Akash multisig. The Akash multisig is a 3-of-4 key-based multisig (returniflost, piber, the Akash community seat (open) and a fourth seat (open); the open seats are named before the vote): any three of the four signers can act, so no single signer is a point of failure and one can be unavailable without stopping custody or the AEP-79 claim, while no one can move funds alone. A parent veto DAO, which holds no funds and decides by 2/3, can veto any custody-subDAO proposal; its members are the other multisig signers (piber, the Akash community seat (open) and the fourth seat (open)); returniflost is not a member. Penumbra liquidity holdings sit in a 2/2 DKG threshold multisig; its two keyholders are Tommi (penumbra.fi) and returniflost. The seat allocation and all addresses are coordinated transparently and can be vetoed by the parent veto DAO.

The AKT lines and their share of the pool:

Pool: 3,359,962 AKT (api.akashnet.net, height 29,158,300, 2026-10-21 03:14 UTC); base snapshot 6,119,304 AKT at height 28,949,492 (2026-10-06 21:16 UTC). The pairing AKT (5.79%) is not paid out for services: it goes into liquidity positions held for Akash, where it is at risk and can lose value. Operations (about 10,510 AKT, 0.31%) is spent. The spend message writes the uakt amounts from the AKT price used for the message.

In context. Other community-pool requests share the same pool. Proposal #342 (Expanding Akash Network Market Liquidity and Depth, 1,605,394 AKT lent for market making that stays a community-pool asset) passed; its voting ended on 2026-10-14. Overclock Labs' three Q3 2026 funding proposals, #343 Core Engineering 299,732 AKT, #344 Client Engineering 323,415 AKT and #345 AEP Support Services 869,099 AKT (1,492,246 AKT together), passed on 2026-10-21 (voting ended 01:12, 01:14 and 01:18 UTC; final tallies, yes / abstain / no / no-with-veto in AKT: #343 49,925,191 / 573,847 / 9 / 411; #344 49,926,269 / 571,582 / 5 / 0; #345 49,926,779 / 571,816 / 5 / 0), and their spends have executed. The pool now holds 3,359,962 AKT (api.akashnet.net, height 29,158,300, 2026-10-21 03:14 UTC).

We set the pairing AKT at 70% of the TERP/THIOL floor value rather than 100%. With #342 and #343–#345 passed, this proposal and the separate research proposal together come to about 6.66% of the current pool, within about half again (~6.8%) of the ~4.5% of the pool the two came to at the 2026-10-06 snapshot. Like #342, the pairing AKT is held for Akash rather than paid out, though it is at risk in the positions; operations (about 10,510 AKT) is spent. The AKT amounts are recalculated from the live AKT price at submission. At the 2026-10-21 price (AKT $0.724893, Osmosis SQS, 03:14 UTC) they would be lower: about 193,903 AKT for this proposal (5.77% of the current pool), 17,658 AKT for the research proposal (0.53%), 211,561 AKT together (6.30%).

What this proposal does not ask for: any change to Akash's protocol.

The path (how the funds move)

This is the operating sequence the mandate binds every custodian to. Moving the funds to Terp needs a governance step on each chain first: reconnecting the IBC connection between Akash and Terp takes a client-recovery vote by Akash governance and one by Terp governance. After that, relayer gas is covered by Terp's 1-year relayer gas subsidy.

Routing. The new AKT reaches Osmosis and Penumbra through Terp's IBC channels. The canonical route, including any multi-hop path, is set by the custody subDAO after further research.

Questions

What is the plan for fungibility with the new Akash assets? Allocate the funds now. TERP and THIOL move into Terp Network custody straight away; they are Terp-native once home and are unaffected by the migration. 50% of the pairing AKT is deployed now with its TERP/THIOL pairing. The other 50% is reserved in the Akash multisig through the migration; the signers claim new AKT directly at the snapshot, bring it into Terp custody, deploy it, and rotate liquidity and positions in stages. Caveat: AEP-79 claims are made by a threshold-signed message from the Akash multisig naming a recipient on the new chain, and stay open for 2 years from the snapshot (05 §4.2–4.4, §11).

Why deploy 50% now? The migration timeline is uncertain, and we want the markets working now. Reserving the other 50% of the AKT in the Akash multisig preserves the direct AEP-79 claim. While the AEP-79 migration runs, the Akash multisig signers (3-of-4: returniflost, piber, the Akash community seat (open) and a fourth seat (open)) handle the AKT in pools, so active community participants have a voice before the custody DAO committee takes over. After the migration, staged rotation moves liquidity and positions where they are used most effectively.

The migration in detail

• What is public. Akash is migrating its protocol off its sovereign Cosmos SDK chain (akashnet-2). The roadmap item is AEP-79. Its execution-depth document set is the Akash Chain Migration Program (v0.9 draft for review, 2026-08-10). As of 2026-10-06 no migration proposal has appeared on-chain.
• What it means for the TERP/THIOL. IBC voucher assets on akashnet-2 "cannot be represented by the claims system (the target cannot mint them)". Holders must move them to their origin chains before the halt (05 Token migration §7.4).
• Why allocate now. At the end of the migration the community pool's AKT moves into the new chain's DAO treasury, and from then on "spends follow target-chain governance only" (05 §10). A spend of these TERP/THIOL has to happen on akashnet-2, before the migration.
• AKT in an account on akashnet-2 is captured in the snapshot and claimed by its holder; multisig accounts claim with threshold signatures (05 §4.4). This proposal keeps the reserved 50% of the pairing AKT in the Akash multisig for that claim (path step 3).
• The document set is internally inconsistent on when outbound IBC closes (05 §7.2 vs 06 §5.5). This mandate plans for the earlier reading: TERP and THIOL leave akashnet-2 as soon as the IBC connection is restored.

Mechanism

Paired liquidity

• Three pairs. The program runs TERP/THIOL, AKT/THIOL and AKT/TERP. About 30% of the TERP and of the THIOL, the part the pairing AKT (70% of the floor value) does not cover 1:1, is paired with each other in TERP/THIOL; the rest, about 70%, is paired with AKT. The custody subDAO sets the exact split around that share and publishes it.
• Venue per pair. Each pair runs on Osmosis, Penumbra or both, as the custody subDAO decides for that pair and reports monthly.
• Opening price. There is no AKT/TERP, AKT/THIOL or TERP/THIOL market today, so the subDAO sets each new pool's opening price at or above the floor in USD, converted at the live AKT price, and publishes it. TERP/THIOL opens at the ratio of the two floors (about 2.12 THIOL per TERP).
• Opening ranges. New ranges open at or above the floor; after that, they follow the market as the custody subDAO decides and reports.
• Incentives. Part of each venue's allocation may be paid as incentives to outside LPs; the point is picked from measured LP response (illustration: 10–30% of what is deployed).
• Accountability per venue: epoch commitments on Osmosis and public viewing keys on Penumbra, as in path step 4.

Market making and arbitrage

• Arbitrage reserve. Part of the pairing AKT, TERP and THIOL is kept as a reserve for arbitrage and rebalancing between the venues and across the three pairs, so prices stay aligned while the rest is deployed as LP. Its size, and when it is drawn, topped up or returned to the LPs, are decided by subDAO proposal, subject to the parent DAO's veto. Net AKT leakage from the reserve and from rebalancing is hard-capped (see Guardrails).
• A bot adapted from the open-source maat trades from a capped float drawn from that reserve, never LP principal: between Osmosis and Penumbra on the same pair, and across the three pairs (for example AKT → TERP → THIOL → AKT).
• Rebalancing and arbitrage buy and sell AKT, TERP and THIOL. That is what keeps the venues balanced. Arbitrage can lose money as well as make it. The guardrails below govern it.
• Any arbitrage profit is split as set out under Operations budget.
• LP fees, if the pools are traded, follow the reinjection-or-sweep rule the subDAO publishes within the mandate. TERP/THIOL fees are compounded.

Guardrails (binding on every custodian)

• Staged deployment. 50% of the pairing AKT, with its TERP/THIOL pairing, is deployed now, before the migration; the other 50% of the pairing AKT is reserved until after it, then liquidity and positions are rotated in stages. While the AEP-79 migration runs, the Akash multisig signers (3-of-4: returniflost, piber, the Akash community seat (open) and a fourth seat (open)) handle the AKT in pools, so active community participants have a voice before the custody DAO committee takes over. The reserved AKT is not used for any LP position, swap, incentive or arbitrage until it has been claimed and brought into Terp custody (path step 3).
• Claim. The Akash multisig must be a key-based multisig whose signers can produce the threshold-signed claim (contract accounts are excluded from AEP-79 claims). The reserved 50% of the AKT is not moved off akashnet-2 before the snapshot.
• Floor (a baseline for the initial allocation, not a price guarantee). Terp's floor ($0.05534 per TERP / $0.0261 per THIOL, Terp baseline valuation) was set by Terp's community governance proposal, not ad hoc. Without a pool, any valuation of TERP/THIOL is arbitrary; the liquidity pools are what create price discovery. The floor is used only to value the TERP/THIOL for this allocation and to set the opening prices of new pools. It does not control or protect the open-market price of TERP or THIOL, which can trade below it.
• AKT trading is allowed after deployment, and bounded. Positions and the arbitrage bot sell AKT as well as buy it. There is no AKT price floor. Instead:
  • Inventory band. The subDAO publishes a band for the AKT share of the program's inventory value (illustration: 35–65%). Outside the band, rebalancing is required and new AKT-selling is paused until it is back inside.
  • Slippage, size and daily-loss limits on every swap and arbitrage leg.
  • Kill switch. The bot stops if its price sources are stale or disagree, or if a loss limit is hit. The subDAO can stop all program trading at once; a stop takes effect immediately and is not held for the veto window.
  • Hard cap on net AKT leakage. Net AKT leaving the program through the arbitrage reserve and rebalancing (AKT sold minus AKT bought, cumulative from first deployment) may not exceed 10% of live (deployed) AKT: about 9,733 AKT while the first 50% (97,333 AKT) is live, and about 19,466 AKT once fully deployed. The value is calibrated with the Akash simulation and may be refined through open collaboration. Reaching the cap pauses arbitrage and rebalancing automatically.
  • Drawdown auto-pause. If the program's live AKT holdings drop 10%, measured in AKT units against their peak within a 30-day window (not NAV), arbitrage, rebalancing and new AKT-selling pause automatically, with no vote. The trigger and window are calibrated with the Akash simulation and may be refined through open collaboration. Trading resumes only by a custody-subDAO proposal that passes the veto window. Every pause is reported.
  • Reporting. Every AKT bought and sold is in the monthly statement, with tx hashes.
• Budgets. Operations AKT is used only for the $200/month operations line from first deployment (or returned). The arbitrage split is applied every month.
• Pacing. Deployment pacing and tranche sizes are decided by the custody subDAO managing the positions and reported transparently each month.
• Arbitrage reserve. Capped at a level the subDAO approves and publishes; the bot's float is capped the same way. Unused reserve is deployed into the LPs by subDAO proposal.
• Custody. The Akash multisig, a 3-of-4 key-based multisig (returniflost, piber, the Akash community seat (open) and a fourth seat (open)), holds the reserved AKT until the claim, and its signers handle the AKT in pools during the migration; the custody subDAO on Terp, whose only member is returniflost, holds everything else, and the new AKT after the claim. Every subDAO proposal passes a published veto window in which the parent veto DAO, deciding by 2/3, can veto it. The parent veto DAO holds no funds. Penumbra holdings sit in a 2/2 DKG threshold multisig that acts only on subDAO decisions. The arbitrage bot runs from a separate wallet that holds only its capped float, never LP principal.
• Subdelegations. After deployment, the subDAO may approve subdelegations (for example an Osmosis LP manager or a Penumbra LP manager) with a published scope, size cap and revoke path, subject to the veto. Subdelegations cannot change the floor, the budgets, the arbitrage split or the exit rules.
• Migration deadlines. No TERP/THIOL remains on akashnet-2 at cutover; the reserved AKT stays only in the Akash multisig, for the claim, with a safety buffer published once Akash governance sets the cutover date.

Decision rights

Committee obligations

The custody subDAO's member and the Akash multisig signers commit to:

• Steward the initial actions for bootstrapping liquidity: the TERP/THIOL transfer into custody, the first 50% of the pairing AKT, the AKT claim and the staged rotation.
• Communicate and coordinate rotation proactively if their availability changes, so custody can always act.
• Keep records, self-regulated: 4 quarterly meetings a year with a published summary of activity and any grievances (75% attendance required), and 12 monthly meetings (25% attendance required).

Parent veto DAO members (piber, the Akash community seat (open) and the fourth seat (open)) receive the quarterly summaries and can raise grievances there.

Lifecycle (reevaluated at 2030-04-20)

Anchor. The program is reevaluated at 2030-04-20, when the Terp Foundation's genesis treasury allocation (a 46.2M TERP delayed-vesting account) finishes vesting and its TERP becomes transferable. Sources: live account and the genesis handoff package.

Ending early. Before the 2030 review the program unwinds only if (a) Akash governance votes for it, or (b) a guardrail is breached. A breach first trips the kill switch; reaching the net AKT leakage cap or the drawdown trigger pauses trading automatically.

Unwind order. Stop new tranches and pause arbitrage → withdraw positions → return remaining AKT and accrued assets to Akash's community pool, or to its successor treasury after the migration, as Akash governance directs → hold the remaining TERP/THIOL under the mandate until governance directs otherwise.

Operations budget

$7,200 (= $200/month × 36 months) in AKT, for maintenance and coordination of the liquidity (reporting, rebalancing coordination, epoch operations, viewing-key continuity, operator liaison). The 36-month clock starts at first deployment (the first 50%, before the migration).

Arbitrage split. Arbitrage profit, if any: half goes to this operations line, up to $200 a month; everything else goes back into the liquidity positions.

If arbitrage covers less than $200 in a month, the shortfall is drawn from the operations AKT. Unspent operations AKT stays in custody, is reported monthly, and at the 2030 review (or on early unwind) returns to Akash's community pool, or to its successor treasury after the migration, as Akash governance directs.

Reporting

Monthly public statement, from the spend onward:

• custody balances and addresses (Akash multisig, custody subDAO, Penumbra 2/2 DKG account);
• subDAO proposals, and any parent-DAO veto;
• migration status and claim progress;

and, after deployment:

• positions per venue (value, pair, range, pool share);
• AKT, TERP and THIOL held, and the AKT share of inventory against its band;
• every buy and sell by the positions and the arbitrage bot, with tx hashes;
• the arbitrage reserve balance and the bot's float; arbitrage PnL and the split applied (operations vs LPs);
• operations draw for the month against the $200;
• Osmosis epoch commitments hit or missed; Penumbra viewing-key continuity;
• every TERP/THIOL price checked against the floor;
• net AKT leakage against the cap, the drawdown against its trigger, and any automatic pause;
• incidents and any kill-switch use.

Quarterly: review with the members. Every 12 months: full report ahead of the annual refresh. At the 2030 review: a full program report. We will submit each report to Akash's community-pool spend reporting table and post it in the discussion thread.

Risks

• 5.79% of the pool's AKT is at risk in the LPs. Impermanent loss, arbitrage leakage and AKT bought and sold can reduce it. The hard cap and drawdown auto-pause bound the loss; they do not remove it.
• Positions during the migration. The first 50% is live while AEP-79 runs. The Akash multisig signers handle the AKT in pools during the migration, inside the same guardrails, and those positions join the staged rotation afterwards.
• Claim timing follows Akash. The claim opens after the migration snapshot; its exact dates are set by Akash's migration governance.
• Routing is set later. The canonical IBC route for the new AKT, including any multi-hop path, is chosen after further research.
• Value can change during the hold. The AKT held for the claim is held, not hedged, until it is deployed.
• The program sells AKT as well as buying it once deployed. Positions can end up worth less than simply holding (impermanent loss). The band, limits, net AKT leakage cap, drawdown auto-pause, kill switch and reporting bound this; they do not remove it.
• Fees are not assured. No TERP/THIOL market exists today. The pools can earn LP fees only if traders use them.
• No public TERP/THIOL market price exists today. Opening prices are set at or above the floor; the market may never trade there, and positions priced above the market earn nothing.
• Operations runway. The operations AKT is fixed when the spend executes. If AKT falls, the $7,200 line covers fewer than 36 months; the remaining runway is reported monthly.
• Conflict of interest, disclosed. Terp benefits from TERP/THIOL liquidity. Terp holds a seat on the custody subDAO, cannot move funds alone, takes no fee share, and every subDAO proposal can be vetoed by the parent DAO.

Decided now vs set later

Technical details

• On-chain title: Pair AKT with TERP & THIOL (26 characters, 26 bytes). On akashnet-2 the title is checked against the gov MaxMetadataLen, which Akash sets to 10,200 (the SDK default is 255).
• On-chain description (summary): Appendix A below, ending with the IPFS link to this full text (limit 40 × 10,200 = 408,000 bytes). Metadata: the same IPFS link (limit 10,200 bytes).
• Message: one /cosmos.distribution.v1beta1.MsgCommunityPoolSpend (Akash keeps its community pool in x/distribution; x/protocolpool is not enabled). Authority akash10d07y265gmmuvt4z0w9aw880jnsr700jhe7z0f (gov module account, checked live 2026-10-07). Recipient: the Akash multisig (address published before the vote). Amount (coins sorted by denom): 2846700000000 ibc/518135424C702F65319C4A5DC1102D868BFDB62CEE78648E51B4712A3D4A7296 (THIOL) + 2100000000000 ibc/C716B1F3652237C4B4AA7D600FD841B8C160AE10982D4BD8126125F54303DEA9 (TERP) + the uakt total of the two AKT lines, each floor(USD ÷ P_AKT × 10^6) at the price used for the message. At P_AKT $0.685069 (2026-10-19): 205,174,967,776 uakt (194,665,077,532 + 10,509,890,244).
• Deposit: 1,000 AKT (1000000000uakt, the live minimum; at least 40% at submission). Voting period: 7 days.
• On-chain facts (api.akashnet.net, height 28,949,492, 2026-10-06 21:16 UTC): the pool holds exactly the TERP/THIOL above (distribution module sole holder) and 6,119,303.69 AKT. Channel-115 (counterparty Terp channel-6) is OPEN; its light clients are restored before path step 1.
• Akash governance parameters (live): quorum 33.4%, threshold 50%, veto 33.4%, min deposit 1,000 AKT (initial ratio 40%), voting 7 days. Chain software: Akash node v2.1.0 on Cosmos SDK v0.53.7-akash.2.
• Where the TERP/THIOL came from: Terp Prop 26 (passed 2023-10-22).
• 2030 date: Foundation treasury allocation DelayedVestingAccount original vesting 46,200,000 TERP, end time 1902928322 (2030-04-20 15:12:02 UTC).

Links

• Akash migration: AEP-79 · Migration Program docs (v0.9 draft for review) · 05 Token migration · The Block, 2025-10-13
• Precedent: Prop 316 (market-making liquidity) · Prop 341 (gas funding for price-relayer operations) · Community groups
• Floor: Terp baseline valuation
• Tools: maat · Osmosis concentrated liquidity · Penumbra LP
• Live data: Akash community pool · Osmosis SQS AKT price

Appendix A: on-chain description

This appendix is the on-chain description (summary). On-chain it ends with the IPFS link to this document.

The ask. Spend from the community pool to the Akash multisig, held for Akash under this mandate:

• 2,100,000 TERP + 2,846,700 THIOL already in the pool (idle since 2023; valued at $190,512.87 at Terp's published floor; no market price exists yet);
• AKT in two lines, set in USD:
  • Liquidity pairing: AKT equal to 70% of the TERP/THIOL floor value ($133,359.01), held for Akash; the other ~30% of the TERP and THIOL is paired TERP/THIOL;
  • Operations: $7,200 ($200/month × 36 months from first deployment).

At 2026-10-19 prices (AKT $0.685069) that is about 194,665 + 10,510 = 205,175 AKT, 6.11% of the pool's AKT (3,359,962 AKT on 2026-10-21, after proposals #342–#345 passed). At the 2026-10-21 price ($0.724893) it would be about 193,903 AKT. The exact uakt amounts are set from the AKT price used for the spend message. Privacy research is a separate proposal.

The risk, and why it is worth it. The pairing (about 194,665 AKT, 5.79% of the pool) goes into LPs and is at risk: impermanent loss, arbitrage leakage, and AKT both bought and sold; operations is about 10,510 AKT (0.31%). The TERP and THIOL are otherwise unrecoverable; pairing them with a modest, monitored AKT commitment is a reasonable bet on creating a market where none exists.

Why. The spend has to happen on the current chain before the AEP-79 migration, because IBC TERP/THIOL cannot be carried to the new chain. Terp Network runs its RPC and sentry nodes on Akash providers and builds Akash tooling; deploying AKT liquidity into more DEXs serves Akash's priority of reaching markets beyond its L1. The pairing is held for Akash as liquidity, in a 3-of-4 Akash multisig with an Akash community seat, with monthly public reports and Akash members holding a veto.

If it does not pass. The TERP and THIOL stay in the community pool; Terp Network will not coordinate their retrieval and expects that supply to stay out of circulation permanently, as with the allocations gifted to Stargaze, Osmosis, OmniFlix and Evmos.

Staged deployment. Funds are allocated now. 50% of the pairing AKT, with its TERP/THIOL pairing, is deployed now, because the migration timeline is uncertain; the other 50% is reserved and not used until after the migration, then liquidity and positions are rotated in stages. During the migration the Akash multisig signers handle the AKT in pools.

Path. (0) Spend to the Akash multisig, 3-of-4 (returniflost, piber, the Akash community seat (open) and a fourth seat (open)), so no single signer is a point of failure; returniflost, a signer, is the only member of the custody subDAO on Terp. (1) After the Akash ↔ Terp IBC connection is restored (a governance step on each chain), TERP/THIOL go straight to the custody subDAO. (2) A parent veto DAO that holds no funds (piber, the Akash community seat (open) and the fourth seat (open); not returniflost) can veto the subDAO's proposals by 2/3. (3) 50% of the pairing AKT is deployed now with its TERP/THIOL pairing; the reserved 50% stays in the Akash multisig through the migration, and the signers claim new AKT directly and bring it into Terp custody. (4) Deploy the rest and rotate in stages, in three pairs, TERP/THIOL, AKT/THIOL and AKT/TERP, each on Osmosis or Penumbra as the subDAO decides, through Terp's IBC channels: Osmosis cross-chain account with epoch commitments, Penumbra managed LP in 2/2 DKG custody with viewing keys published; staged, with an arbitrage reserve.

Arbitrage reserve and split. Part of the pairing is held as an arbitrage reserve, sized and used by subDAO proposal subject to veto. Arbitrage profit, if any: half goes to operations, up to $200 a month; everything else goes back into the liquidity positions.

Guardrails. Terp's floor ($0.05534 / $0.0261), set by Terp's community governance proposal, values the initial allocation and sets opening prices; it is a baseline, not a market price guarantee. Without a pool any TERP/THIOL valuation is arbitrary; the pools create price discovery. The Akash multisig must be able to sign the AKT claim. AKT trades inside a published inventory band, with slippage, size and daily-loss limits and a kill switch. Net AKT leakage from arbitrage and rebalancing is hard-capped at 10% of live (deployed) AKT (about 9,733 AKT while the first 50% is live; about 19,466 AKT once fully deployed); a 10% drop in the program's live AKT holdings, in AKT units against their 30-day peak (not NAV), pauses trading automatically. The values were calibrated with the Akash simulation (https://permissionless.money/alpha/akash/sim.html) and may be refined through open collaboration. Reports are public and monthly.

Committee obligations. The custody subDAO's member and the multisig signers steward the initial actions, coordinate rotation if availability changes, and hold 4 quarterly meetings a year with published summaries (75% attendance) and 12 monthly meetings (25% attendance).

Lifecycle. Akash governance reevaluates the program at 2030-04-20, when the Terp Foundation's genesis allocation finishes vesting. Members are refreshed yearly, and the default is to continue, under the hard cap and auto-pause. The program unwinds early only on an Akash vote or a guardrail breach. Unspent operations AKT returns to Akash's community pool or its successor treasury.

Full proposal: this document.