> For the complete documentation index, see [llms.txt](https://three-3.gitbook.io/litepaper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://three-3.gitbook.io/litepaper/tokenomics-of-the-three-protocol.md).

# Tokenomics of the Three Protocol

The Three Protocol incorporates the $THREE token, which has a finite supply of 100 million units.

<figure><img src="/files/cuKxOQWpTcmVyrMyTCqW" alt=""><figcaption></figcaption></figure>

Token Allocation&#x20;

**The distribution of the $THREE tokens is as follows:**

* Team Allocation: Constituting 15% of the total supply, these tokens are scheduled for a linear release spanning 18 months, ensuring a gradual distribution that aligns with the project's long-term objectives.
* Staking Incentives: Allocated 10% of the total supply, these tokens are designated for users who participate in the staking mechanisms, supporting the security and stability of the network.
* Liquidity Provision: A significant 75% is dedicated to liquidity, underscoring the project’s commitment to a robust and fluid market for the $THREE token.

**- 100m Total Supply**

**- Liquidity 74.5%**

**- Staking 10%**

**- Team 15%**

**- Airdrop 0.5%**<br>

**Utility and Applications**

The $THREE token exhibits several utilities within the ecosystem:

* Fee Reduction: Users benefit from a 5% fee reduction when transactions are conducted using the native token.
* Governance Participation: Holding the $THREE token grants governance rights across all Three Protocol platforms, empowering token holders with a voice in decision-making processes.
* Staking Rewards: Users can stake their tokens to earn rewards, contributing to the network's economic activities.
* Educational Incentives: The project incentivizes learning through 'train-to-earn' initiatives, fostering a knowledgeable community.

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**Token Distribution and Launch Plan**

The token launch is executed with transparency, releasing all tokens immediately except for those allocated to the team, which are subject to an 18-month vesting period. This strategy mirrors a 'fair launch' styled approach, aiming to promote equitable distribution and a community focus.