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