> For the complete documentation index, see [llms.txt](https://doc.monetrix.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://doc.monetrix.xyz/tokenomics/tokenomics.md).

# Overview

> **Pre-TGE framework.** Final allocation percentages, vesting schedules, token counts, and emission curves will be published before TGE. Until then, this page explains the intended token categories and design principles, not final token terms.

## Tokens in the Monetrix system

### USDM: the yield-bearing stable token

* Minted 1:1 against USDC at protocol issuance.
* Redemption value grows through NAV appreciation as the protocol earns yield.
* Not a governance token; USDM exists solely to deliver on-chain yield-bearing stability.

### (Governance / incentive token): TBD

Details to be disclosed before TGE.

## Planned allocation categories

Exact percentages are **to be finalized**. The planned buckets:

| Category                   | Purpose                                                                                 |
| -------------------------- | --------------------------------------------------------------------------------------- |
| **Users / Community**      | Points mining, liquidity mining, airdrops to protocol users and ecosystem participants  |
| **Ecosystem & Incentives** | Partnerships, integrations, long-term liquidity incentives, emitted based on TVL growth |
| **Treasury**               | Protocol reserves; unlocks via DAO governance                                           |
| **Team & Advisors**        | Multi-year vesting with cliff                                                           |
| **Seed Round**             | Early backers; cliff + linear vesting                                                   |
| **Private Round**          | Strategic raise; cliff + linear vesting                                                 |
| **Liquidity**              | Initial DEX liquidity and insurance fund bootstrap; unlocked at TGE                     |

## Vesting principles

* **Team and investor allocations** vest over multi-year schedules with cliffs, aligning long-term incentives.
* **User and ecosystem allocations** are emitted based on measurable protocol metrics (TVL, volume, integrations), not on a fixed emission curve.
* **Liquidity and insurance allocations** are made available at TGE to ensure deep markets and downside buffers from day one.

## Use of funds

The raise is directed toward three priorities:

* **Engineering**: quantitative developers for the hedging engine and smart contract security.
* **Liquidity & Insurance**: seed liquidity and an insurance fund to mitigate black-swan funding events.
* **Ecosystem & Marketing**: user acquisition, integration incentives, and community building.

## Coming soon

* Final allocation table with percentages and token counts
* Full vesting schedule per bucket
* Emission model for ecosystem incentives
* Governance parameters and handoff plan

This page will be updated as decisions are finalized. Follow the [Resources](/resources/resources.md) page for announcements.


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