# Tokenomics and Economic Model

The Daolity **token** serves as the backbone of Daolity’s ecosystem, designed to fuel growth, incentivize participation, and support long-term sustainability. The total supply of Daolity is **100,000,000,000 tokens**, allocated across various strategic categories to ensure balanced distribution between community, contributors, infrastructure, and ecosystem expansion. A thoughtful unlocking schedule and circulation strategy has been implemented to align with project milestones, maintain healthy market dynamics, and uphold long-term trust. Below is the detailed breakdown of the token allocation and the estimated initial circulation.

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## **Token Distribution Model**

To ensure a fair and sustainable token economy, Daolity total supply is distributed strategically:

| **Allocation Category**                | **Percentage** | **Quantity (Daolity)** | **Unlock / Notes**                                                                          |
| -------------------------------------- | -------------- | ---------------------- | ------------------------------------------------------------------------------------------- |
| **Community Participation Incentives** | 20%            | 20,000,000,000         | 10% is unlocked at TGE, and the rest is released linearly on a monthly basis for 12 months. |
| **Partner Network Incentives**         | 15%            | 15,000,000,000         | 10% is unlocked at TGE, and the rest is released linearly on a monthly basis for 12 months. |
| **Development and Ecosystem Fund**     | 25%            | 25,000,000,000         | 10% unlocked at TGE, unlocked linearly over 12 months according to the annual plan          |
| **Team & Advisors**                    | 15%            | 15,000,000,000         | Vest over 4 years, with a 12-month cliff release followed by a linear release               |
| **Reserve Fund**                       | 10%            | 10,000,000,000         | Mainly used for centralized exchange (CEX) listings.                                        |
| **Liquidity Supply**                   | 10%            | 10,000,000,000         | 10% of the total supply will be allocated to liquidity                                      |
| **Node Incentive Program**             | 5%             | 5,000,000,000          | 10% unlocked at TGE, unlocked linearly over 12 months.                                      |
| **TOTAL**                              | **100%**       | **100,000,000,000**    |                                                                                             |

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#### 💠 **Initial Circulation Strategy**

To ensure sustainable token flow and market stability, Daolity has carefully planned the initial circulation of the Daolity token across all allocation categories. Below is the detailed breakdown of each category’s circulation logic:

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**🟦 20% - Community Participation Incentives**

* This part is used to reward community users for participating in activities, including testnet interaction, submitting tasks, running nodes, feedback suggestions and participating in governance.
* 10% is unlocked at TGE, and the rest is released linearly on a monthly basis for 12 months.

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**🟩 15% - Partner Network Incentives**

* Used to support project ecosystem expansion, including inviting key partners, establishing strategic alliances, technical integration and building community networks. It can also be used to hold online and offline hackathons, developer competitions and other ecosystem promotion activities.
* 10% is unlocked at TGE, and the rest is released linearly on a monthly basis for 12 months.

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**🟨 25% - Development and Ecosystem Fund**

* These tokens will be used for platform development, partnerships, integration with new wallets and exchanges, and other ecosystem growth plans. 
* 10% unlocked at TGE, unlocked linearly over 12 months according to the annual plan

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**🟧 15% - Team & Advisors**

Team and Advisor tokens allocated to the core team and advisors will vest over 4 years, with a 12-month cliff release followed by a linear release to align with long-term platform development goals

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**🟥 10% - Reserve Fun**d

For future strategic needs such as exchange listings, liquidity configuration, and unforeseen circumstances. Mainly used for centralized exchange (CEX) listings.

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**🟪 10% - Liquidity Supply**

* In order to ensure a healthy liquidity pool for CPK token trading on decentralized and centralized exchanges. 
* 10% of the total supply will be allocated to liquidity to facilitate smooth trading and minimize slippage.

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**⬛ 5% - Node Incentive Program**

* This section is designed to incentivize contributors such as running validation nodes, computing nodes, RPC/API service nodes, etc., to support the construction of decentralized network infrastructure. 
* 10% unlocked at TGE, unlocked linearly over 12 months.

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