# Tokenomics

### Overview

The Stonest token is the economic foundation of the protocol. It coordinates incentives between users who store data, node operators who provide storage capacity, and the broader community that governs and grows the network.

Distribution is designed around a community-first philosophy: the largest allocations sit with users, liquidity, and storage providers — not insiders.

### Distribution

| Allocation             | % of Supply |
| ---------------------- | ----------- |
| Community & Ecosystem  | 35%         |
| Liquidity Pool         | 20%         |
| Team & Advisors        | 15%         |
| Storage Mining Rewards | 15%         |
| Marketing              | 10%         |
| Reserve / Treasury     | 5%          |

#### Community & Ecosystem — 35%

The largest allocation funds long-term community growth: ecosystem grants, developer incentives, partner integrations, airdrops to early adopters, and programs that bring new users and storage demand onto the network. Distribution decisions transition to DAO governance in Phase 4.

#### Liquidity Pool — 20%

Reserved for deep, multi-venue liquidity at launch and across the project's lifecycle. Healthy liquidity reduces slippage for users entering and exiting positions, and is a prerequisite for the token's role as a payment medium for storage and a stake asset for node operators.

#### Team & Advisors — 15%

Allocated to the core team and strategic advisors. Subject to a 12-month cliff followed by 24-month linear vesting, ensuring long-term alignment between contributors and the network's success.

#### Storage Mining Rewards — 15%

Distributed to node operators who provide verifiable storage capacity and consistently pass Proof-of-Storage challenges. Emissions are scheduled across the network's bootstrapping phase to bootstrap supply-side capacity before storage demand can sustain rewards on its own.

#### Marketing — 10%

Funds awareness, education, and growth campaigns: content, partnerships, exchange listings, conferences, and creator programs that grow the addressable user base for decentralized storage.

#### Reserve / Treasury — 5%

A protocol-controlled reserve held for unforeseen needs: emergency liquidity, audits, legal contingencies, and strategic opportunities that arise as the protocol matures. Treasury actions become subject to DAO approval once governance launches.

### Vesting & Unlock Schedule

| Allocation             | Cliff     | Vesting                                                                      |
| ---------------------- | --------- | ---------------------------------------------------------------------------- |
| Community & Ecosystem  | None      | Released programmatically as grants and incentives are deployed              |
| Liquidity Pool         | None      | Available at TGE for liquidity provisioning                                  |
| Team & Advisors        | 12 months | 24 months linear                                                             |
| Storage Mining Rewards | None      | Emitted to operators per epoch over the bootstrapping schedule               |
| Marketing              | None      | Released to fund campaigns over the first 36 months                          |
| Reserve / Treasury     | None      | Time-locked; deployments subject to multi-sig and (post-launch) DAO approval |

### Token Utility

The token is integral to network operation and provides four primary functions:

1. **Payment for Storage** — Users pay node operators in the native token to store and retrieve data.
2. **Operator Staking** — Node operators stake tokens as collateral to participate in the network. Stakes are slashed for missed Proof-of-Storage challenges or downtime, aligning operators with reliability.
3. **Governance** — Holders vote on protocol parameters, treasury allocation, and upgrade proposals once the DAO is live.
4. **Ecosystem Incentives** — Used to fund grants, reward early users, and bootstrap supply-side capacity during the network's growth phases.

### Design Principles

* **Community-weighted distribution.** Insider allocations (Team & Advisors) are capped at 15% with the longest vesting, while community, liquidity, and storage rewards together represent 70% of supply.
* **Aligned incentives.** Storage operators stake the same token they earn — bad behavior is economically expensive, good behavior compounds.
* **Sustainable emissions.** Storage rewards follow a scheduled release designed to taper as organic storage demand grows, transitioning the network from subsidized to fee-driven economics.
* **Transparent treasury.** All non-vesting allocations are published on-chain, and treasury movements are auditable from genesis.


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