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

# The Tokenomics

## Distribution

The Distribution is split across two main venues. Community and Team + Investors

#### Community 61%

* **20% Community Incentives:** Protocol emissions will decline from a high water mark at launch and come to an end after six years
  * Year 1: 35%
  * Year 2: 25%
  * Year 3: 15%
  * Year 4: 10%
  * Year 5: 8%
  * Year 6: 7%
* **11% Airdrops:**
  * 7% Quaaloops
  * 1% Loop Olympics
  * 3% Additional Community Airdrops
* **25% DAO Treasury:** 24m linear vesting, no cliff or TGE release.
* **5% Liquidity Bootstrapping:** Used as launch liquidity.

#### Team and Investors 39%

* **24% Core Contributors:** 24m linear vesting, no cliff or TGE release.
* **5% Advisors:** 24m linear vesting, no cliff or TGE release.
* **10% Investors:** 16m linear vesting, 1 month cliff, 5% unlock at TGE

## Utility

* LOOP can be locked in the dLP to govern over the Loop DAO
* LOOP can be locked in the dLP to unlock community incentives
* LOOP can be locked in the dLP to earn yield charged through interest payments


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