> ## Documentation Index
> Fetch the complete documentation index at: https://docs.tedprotocol.io/llms.txt
> Use this file to discover all available pages before exploring further.

# Tokenomics

> 1B fixed supply, community-first distribution

**1 billion fixed supply, community-first distribution, deflationary mechanics**

This page details the TEDP token distribution, vesting schedules, emission timeline, and governance mechanics.

***

### Supply Overview

| Item                   | Details                  |
| ---------------------- | ------------------------ |
| **Total Supply**       | 1,000,000,000 TEDP       |
| **Inflation**          | None (permanently fixed) |
| **Additional Minting** | Impossible               |

Initial circulating supply at launch will be determined by vesting schedules and liquidity allocation.

***

### Token Distribution

| Category              | %   | Amount |
| --------------------- | --- | ------ |
| Community & Ecosystem | 40% | 400M   |
| Team & Advisors       | 20% | 200M   |
| Treasury              | 20% | 200M   |
| Investors             | 15% | 150M   |
| Initial Liquidity     | 5%  | 50M    |

#### Community & Ecosystem (40%)

* **Airdrop**: 100M (10%) - Early user rewards
* **Liquidity Mining**: 150M (15%) - LP incentives
* **Ecosystem Grants**: 150M (15%) - Developer support, partnerships

#### Team & Advisors (20%)

* **Core Team**: 150M (15%) - 4yr vesting, 1yr cliff
* **Advisors**: 50M (5%) - 2yr vesting, 6mo cliff

#### Treasury (20%)

* **Protocol Development**: 100M (10%) - Engineering, audits, infra
* **Strategic Reserve**: 100M (10%) - Future opportunities, emergencies

#### Investors (15%)

* **Seed Round**: 50M (5%) - 2yr vesting, 6mo cliff
* **Strategic Round**: 100M (10%) - 18mo vesting, 6mo cliff

#### Initial Liquidity (5%)

* **DEX Liquidity**: 50M (5%) - TEDP/USDC trading pairs

***

### Vesting Schedules

| Recipient               | Vesting Period | Cliff     | Post-Cliff Unlock | Monthly Unlock |
| ----------------------- | -------------- | --------- | ----------------- | -------------- |
| **Core Team**           | 48 months      | 12 months | 8.33%             | 2.78%          |
| **Advisors**            | 24 months      | 6 months  | 12.5%             | 5.56%          |
| **Seed Investors**      | 24 months      | 6 months  | 12.5%             | 5.56%          |
| **Strategic Investors** | 18 months      | 6 months  | 16.67%            | 8.33%          |

***

### Emission Timeline

| Milestone         | Expected Circulating Supply |
| ----------------- | --------------------------- |
| **End of Year 1** | \~35% (350M)                |
| **End of Year 2** | \~55% (550M)                |
| **End of Year 3** | \~75% (750M)                |
| **End of Year 4** | \~90% (900M)                |
| **End of Year 5** | 100% (1B)                   |

***

### Deflationary Mechanisms

20% of protocol fees are used to purchase TEDP from the open market and permanently burn to a dead address.

**Estimated Annual Burns:**

| Annual Volume | Estimated Burns |
| ------------- | --------------- |
| \$100M        | \~200K TEDP     |
| \$500M        | \~1M TEDP       |
| \$2B          | \~4M+ TEDP      |

***

### Governance Rights

TEDP holders participate in protocol governance with voting power proportional to holdings. 1 TEDP = 1 vote.

**Voting Power Boost:**

| Lock Period | Voting Multiplier |
| ----------- | ----------------- |
| Flexible    | 1.0x              |
| 30 days     | 1.25x             |
| 90 days     | 1.5x              |
| 180 days    | 2.0x              |

**Proposal & Voting Requirements:**

| Item            | Requirement              |
| --------------- | ------------------------ |
| Create Proposal | Minimum 100,000 TEDP     |
| Vote            | Minimum 1 TEDP           |
| Quorum          | 4% of circulating supply |
| Pass Threshold  | >50% approval            |

***

### Revenue Distribution

**Revenue Sources:**

* 0.1% fee on all swaps
* Share of LayerZero and Wormhole bridge fees
* Future premium B2B services

**Distribution Structure:**

| Recipient          | Share | Description                           |
| ------------------ | ----- | ------------------------------------- |
| **TEDP Stakers**   | 50%   | Distributed via staking vault (xTEDP) |
| **Treasury**       | 30%   | Operations and development funding    |
| **Buyback & Burn** | 20%   | Token burns to reduce supply          |

**Revenue Example:**

At \$100,000 monthly protocol revenue:

* Staker distribution: \$50,000
* Per-token monthly earnings (100M staked): \~\$0.0005
* Estimated APY at \$0.10 TEDP price: \~6%