# Aurum Tokenomics

By [Aurum](https://paragraph.com/@aurum-2) · 2024-12-23

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Aurum Protocol’s tokenomics are carefully designed to align incentives, ensure long-term sustainability, and reward early adopters and contributors. The total token supply is capped at **20** **million AUR** tokens, with the following distribution and vesting schedule:

**1\. Token Allocation**
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*   **User Incentives (63%)**: 12.6 million AUR
    
*   Reserved for user incentives, including liquidity mining, staking rewards, Bribes to attract liquidity and ecosystem development.
    
*   Incentives are distributed over **2 years**.
    
*   **Team (15%)**: 3 million AUR
    
*   Allocated to the founding team and core contributors.
    
*   Vesting: 1-year lockup followed by linear unlock over 1 year.
    
*   **Liquidity (15%)**: 3 million AUR
    
*   15% of the total supply is set aside for liquidity for users to buy/sell sufficiently . Some of this will be added at launch(TGE) and the remaining will be added from the fees/yield generated into the pool until all of the liquidity is added
    
*   **Early Investors (5%)**: 1 million AUR
    
*   Allocated to early investors who supported the protocol during its initial phases . These funds will go 100% towards adding liquidity at TGE and Development
    
*   Vesting: 0% unlocked at TGE, with the remaining tokens unlocked linearly over 6 months
    
*   **Partner Airdrop(2%)** 400k AUR
    
*   This Airdrop will go towards all users of partners of AURUM in a locked AUR redeemable after 6 months from TGE
    

**2\. Vesting and Unlock Mechanisms**
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**Incentives (63%)**
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*   **Distribution Period**: 2 years
    
*   **Claim Mechanism**:
    
*   Tokens earned through incentives on the lending market are initially **locked**.
    
*   After **6 months**, users can exchange locked tokens for unlocked tokens and begin claiming rewards.
    
*   Bribes used on dexes to grow liquidity are however claimable in an unlocked form
    

**Team (15%)**
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*   **1-Year Lockup**: No tokens can be claimed during the first year.
    
*   **Linear Unlock**: After the lockup, tokens are released linearly over 1 year.
    

**Early Investors (5%)**
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*   **TGE Unlock**: 0% of tokens unlocked immediately.
    
*   **Remaining Tokens**: Distributed linearly over the next 6 **months**
    

**3\. Aurum Utility**
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The AUR token serves as the backbone of the Aurum ecosystem, offering diverse utilities that drive engagement and ecosystem growth:

1.  **Governance:**
    

*   AUR holders can participate in the governance of the protocol by voting on proposals related to protocol upgrades, risk parameters, and treasury management.
    
*   Governance ensures that Aurum remains community-driven and adaptable to evolving user needs.
    

**2\. Staking Rewards:**

*   Users can stake AUR tokens to earn 50% of protocol revenue while contributing to the security and stability of the protocol.
    
*   Staking incentivizes long-term token holding and aligns user incentives with protocol growth.
    

**3\. Fee Discounts:**

*   AUR holders enjoy reduced fees on borrowing, lending, and other protocol interactions, encouraging active participation within the ecosystem.
    

**4\. Deflationary Mechanisms:**

*   The protocol has plans of introducing token burns or other deflationary mechanisms in the future to enhance token value and control supply.
    

**5\. LP farming:**

*   Token holders can provide liquidity in dexes with AUR token and farm High aprs while earning fees from trading giving them another source of income
    

**4\. TGE timeline**
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Aurum is expected to launch sometime between 20–27th of December . TGE is set at protocol launch where 50k–100k of initial liquidity will be added to a dex . We have kept aside 15% of total supply to be continously added as liquidity paired with USDC .

Stay tuned for more updates on the TGE and launch

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*Originally published on [Aurum](https://paragraph.com/@aurum-2/aurum-tokenomics)*