LIQ Token Economics

Overview

LIQ is the governance and incentive token of the iAERO ecosystem, designed with a deflationary emission schedule and multiple value accrual mechanisms.

Token Specifications

  • Token Name: Liquid

  • Symbol: LIQ

  • Max Supply: 100,000,000 LIQ

  • Decimals: 18

  • Token Type: ERC20 with Permit

Supply Distribution

Total Supply: 100,000,000 LIQ ├── Community Emissions: 30,000,000 (40%) ├── Treasury Vesting: 10,000,000 (10%) ├── Team Vesting: 10,000,000 (10%) ├── Investor Vesting: 30,000,000 (20%) └── Remaining: 20,000,000 (20%) - Protocol reserves

Emission Schedule

Community Emissions (60M LIQ)

LIQ follows a halving schedule for community emissions:

  • Initial Rate: 1 LIQ per 1 iAERO minted

  • Halving Interval: Every 5,000,000 LIQ minted

  • Treasury Take: 20% of all user emissions

Halving Timeline

Milestone
Total Minted
Emission Rate
Per iAERO

Start

0

1.0x

1.0 LIQ

Halving 1

5,000,000

0.5x

0.5 LIQ

Halving 2

10,000,000

0.25x

0.25 LIQ

Halving 3

15,000,000

0.125x

0.125 LIQ

Halving 4

20,000,000

0.0625x

0.0625 LIQ

...

...

...

...

Vesting Schedule (20M LIQ)

20% of supply is linearly vested over 3 years:

  • Treasury: 10,000,000 LIQ (3 years linear)

  • Team: 10,000,000 LIQ (3 years linear)

  • Daily Release: ~9,132 LIQ per day per stream

  • Vesting Contract: LIQLinearVester.sol

Value Accrual Mechanisms

1. Staking Rewards (80% of Protocol Revenue)

LIQ stakers receive the majority of protocol rewards:

Protocol Revenue Flow: ├── 80% → LIQ Stakers (via TreasuryDistributor) └── 20% → Treasury Operations

2. Governance Rights

LIQ holders control:

  • Voting on protocol parameters

  • Treasury allocation

  • Strategic partnerships

  • Protocol upgrades

3. Deflationary Pressure

  • Capped Supply: Hard cap at 100M

  • Halving Emissions: Decreasing inflation over time

  • Burn Mechanism: Users can burn LIQ tokens

Staking LIQ

Stake LIQ to earn protocol revenues:

  • Contract: StakingDistributor (for LIQ staking)

  • Rewards: 80% of treasury's 10% protocol fee share

  • Tokens: AERO, USDC, ETH, and other bribes

  • Compounding: Auto-compound by restaking rewards

Treasury Management

The protocol treasury receives:

  • 20% of all LIQ emissions

  • 10% of all protocol fees

  • Vested allocation (10M over 3 years)

Treasury funds are used for:

  • Protocol development

  • Liquidity provision

  • Strategic partnerships

  • Security audits

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