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

# Tokenomics

## **$AOZ Token Distribution**

The $AOZ token supply is allocated to support network stability, ecosystem expansion, long-term sustainability, and decentralized economic growth. The distribution model is structured to align incentives between participants, contributors, and the protocol itself.

| Allocation                             | Percentage | Purpose                                                                                                                             |
| -------------------------------------- | ---------- | ----------------------------------------------------------------------------------------------------------------------------------- |
| **Liquidity & Market Stability**       | **40%**    | Ensures deep, reliable liquidity across DEX/CEX markets and supports smooth entry/exit for participants.                            |
| **Expansion & Cross-Chain Deployment** | **20%**    | Funds strategic scaling operations, Layer-2 expansions, cross-chain bridges, and network onboarding initiatives.                    |
| **Marketing & Ecosystem Awareness**    | **10%**    | Supports brand growth, community campaigns, partnerships outreach, and long-term narrative development.                             |
| **Protocol Reserves**                  | **10%**    | Held in treasury for future strategic use; ensures resilience during market volatility or unforeseen system events.                 |
| **Ecosystem Incentives**               | **5%**     | Rewards users, builders, validators, and contributors who strengthen the $AOZ network through active participation and reliability. |
| **Team Allocation**                    | **5%**     | Reserved for core contributors, subject to time-locked vesting schedules to ensure continued alignment with protocol success.       |
| **Development Fund**                   | **5%**     | Supports ongoing protocol upgrades, security audits, contract maintenance, and developer tooling.                                   |
| **Partners & Advisors**                | **5%**     | Allocated for strategic alliances, operational support partners, research contributors, and advisory collaboration.                 |

***

### **Vesting & Release Model**

To ensure long-term sustainability and prevent short-term incentive distortion:

* **Team**, **Partners**, and **Advisors** allocations are subject to **vesting schedules**.
* Liquidity allocations may be **locked or time-released** depending on platform and deployment strategy.
* Ecosystem and development funds are released **programmatically** based on milestone progression.

This ensures the $AOZ economy grows **organically, securely, and transparently**.

***

### **Rationale**

This distribution is designed to:

* Maintain **strong liquidity** from launch
* Ensure **continuous network expansion**
* Reward **active ecosystem participants**
* Preserve **flexibility through reserves**
* Protect **long-term alignment** between contributors and the protocol

The structure reflects a commitment to **sustainable network value**, not short-term speculation.
