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

# Tokenomics

To balance the interests of liquidity providers and token holders, BaseX uses a dual-token model that splits utility `$BXT` and DAO `$BDT` functions within the protocol. This separation helps allocate resources for governance effectively without being negatively affected by excessive demand for utility purposes, resulting in a fairer system for all users.

## Initial Token Allocation

<figure><img src="/files/1bSvXwe5jbnYXyebcQe3" alt=""><figcaption><p>$BXT Allocation</p></figcaption></figure>

<table><thead><tr><th width="222">Category</th><th width="104">Supply %</th><th width="136">Amount</th><th>Vesting</th></tr></thead><tbody><tr><td>Airdrop Season</td><td>5%</td><td>2,500,000</td><td>Locked as veBXT for 2 years</td></tr><tr><td>Ecosystem Fund</td><td>27%</td><td>13,500,000</td><td>75% unlocked, 25% linear vesting for 2 years</td></tr><tr><td>Adoption Incentives</td><td>22%</td><td>11,000,000</td><td>Locked as veBXT for 2 years</td></tr><tr><td>Investors</td><td>3%</td><td>1,500,000</td><td>30% unlocked, 6 month cliff, 70% linear vesting for 3 months</td></tr><tr><td>Public Sale</td><td>10%</td><td>5,000,000</td><td>IDO (1.25%) : 30% unlocked, 70% linear vesting for 6 months; LBP (8.75%) : 100% unlocked</td></tr><tr><td>Team</td><td>10%</td><td>5,000,000</td><td>6 month cliff, linear vesting for 18 months</td></tr><tr><td>DAO Treasury</td><td>23%</td><td>11,500,000</td><td>3 month cliff, linear vesting for 21 months</td></tr><tr><td>Total</td><td>100%</td><td>50,000,000</td><td>Initial Circulating Supply: 15,137,500</td></tr></tbody></table>

## Emission

* *Weekly emissions (at inception)*: 750,000 `$BXT`&#x20;
* *Weekly emissions decay*: 1%&#x20;
* *Weekly developer wallet allocation*: 2%
* *Weekly* `veBXT` *rebase*: Up to 30%
* *Emissions for liquidity providers*: 68%

<figure><img src="/files/XoC7DnLBXaKBtbqTzSyQ" alt=""><figcaption><p>BXT Total Supply vs. Week</p></figcaption></figure>

##

<figure><img src="/files/8az5AivzA1eMppn3BsjW" alt=""><figcaption><p>BXT Emissions &#x26; Total Supply</p></figcaption></figure>

## Utilities

### `$BXT` - ERC-20 BaseX Utility Token

`$BXT` is the native utility token of BaseX, providing users with a range of utility functions within the platform, including staking and voting. Users can either earn protocol fees or accrue BaseX DAO tokens by staking their `$BXT`

### `veBXT` - ERC-721 BaseX Governance Token

`veBXT` is the vote-escrowed version of `$BXT`. Users can lock their `$BXT` tokens for up to 2 years to get `veBXT`. The longer the lock, the higher the amount of `veBXT`  voting power received.

The lock period an be up to 2 years, following the linear relationship shown below:

* 100 `$BXT` locked for 2 years will become 100 `veBXT`
* 100 `$BXT` locked for 6 months will become 25 `veBXT`

To encourage continuous locking and sustained participation from stakeholders, the `veBXT` balance of users declines over time until it reaches zero at the conclusion of the initial locking period. `veBXT` positions can be increased, split up and resold on a secondary market.

#### `veBXT` Utility

Revenue Access for Protocol:`veBXT` holders can engage in weekly gauge voting, granting them access to 50% of the trading fees and all bribes from the relevant pool.&#x20;

#### Benefits for `veBXT` Voters:

* Earnings from trading fees of voted pools.
* Receipt of bribes for voted pools.
* Regular `$BXT` distribution (rebase).&#x20;

#### `veBXT` Details&#x20;

ve(3,3) Concept: This merges the anti-dilution rebase mechanism of Olympus DAO with Curve's vote-escrowed model, as introduced by Solidly's ve(3,3) Mechanics. It limits dilution of `veBXT` holders to 30% and allows for dynamic `veBXT` distribution over time.&#x20;

Gauge Feature: Pools with varying `$BXT` rewards determined by weekly `veBXT` voting. No negative votes. Bribery System: Third parties can offer custom tokens to `veBXT` holders in exchange for votes in a gauge.&#x20;

Maximum Lock Period: 2 years.&#x20;

Flexibility: `veBXT` positions can be combined, divided, or traded on secondary markets.&#x20;

Voting Process:

* Epochs last 7 days, with rewards distributed post-epoch. Earnings are exclusive to voted gauges.
* Trading fees and bribes are claimable in total after the succeeding epoch (n+2).
* Consistent weekly voting is required for reward eligibility, unless an optimizer is used.
* Votes can be altered or reset at any point.
* Vote weights are reset each epoch, necessitating continuous voting for fee and bribe acquisition.

### `$BDT` - ERC-20 BaseX DAO Token&#x20;

`$BDT` is the governance token of BaseX DAO. `$BDT` holders have the governance rights over the DAO and management rights of the DAO Treasury.

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