# Aurum Tokenomics

**Published by:** [Aurum](https://paragraph.com/@aurum-2/)
**Published on:** 2024-12-23
**URL:** https://paragraph.com/@aurum-2/aurum-tokenomics

## Content

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 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 Incentives (63%) 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%) 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%) TGE Unlock: 0% of tokens unlocked immediately. Remaining Tokens: Distributed linearly over the next 6 months 3. Aurum Utility The AUR token serves as the backbone of the Aurum ecosystem, offering diverse utilities that drive engagement and ecosystem growth: 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 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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