Supply and Emissions

(Note: Specific numbers are hypothetical since not provided here.)

Liquid has a fixed maximum supply of $LIFI (for example, 1 billion tokens) with a gradual release schedule over time. The initial allocations are structured as follows:

• A portion allocated to early investors.

• A portion allocated to the founding team, subject to multi-year vesting schedules.

• A large portion reserved for ecosystem incentives, including:

  • Staking rewards

  • Liquidity mining programs

  • Community and developer grants

The token is designed with a gradual emission model to avoid flooding the market. For instance, staking rewards could be distributed linearly over four years, ensuring:

• Early adopters are rewarded.

• Future participants still have meaningful staking and incentive opportunities.

Additionally, Liquid may implement buyback and burn strategies, where:

• A percentage of platform revenues are used to buy $LIFI from the open market.

• Purchased $LIFI is then permanently burned, creating deflationary pressure.

Over time, as platform usage grows, these mechanisms can reduce circulating supply and enhance the value for long-term $LIFI holders