Tokenomics

LIQUID's tokenomics are designed to create a sustainable and deflationary ecosystem that benefits all participants while ensuring long-term protocol viability.

Token Distribution

Initial Supply

The total initial supply of LIQUID tokens is distributed across various categories to ensure balanced ecosystem growth and development.

Allocation Breakdown

Community Rewards: 40%
Development Fund: 20%
Liquidity Pool: 15%
Team & Advisors: 15%
Marketing: 10%

Deflationary Mechanisms

Token Burning

A portion of tokens from each transaction is permanently burned, reducing the total supply over time and increasing the value of remaining tokens.

VCM Creation

Creating new Valve Controller Modules requires burning LIQUID tokens, further contributing to the deflationary mechanism.

Reward Distribution

HYPE Token Emissions

HYPE tokens are distributed to protocol participants based on their contribution and engagement level, with emission rates adjusted to maintain sustainable rewards.

Staking Rewards

Users can stake their LIQUID tokens to earn additional rewards and participate in protocol governance.

Economic Model

The LIQUID economic model is designed to create a self-sustaining ecosystem where token value appreciation is driven by utility, scarcity, and protocol growth. The combination of deflationary mechanisms and reward distribution ensures long-term sustainability.