# Tokenomics

## Overview

<figure><img src="https://1496012388-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FSEwRza4r80hmJsISwKFf%2Fuploads%2F4FSIStJ8ybBLrkbA7Zec%2Fv2%20Docs%20Graphic%20(6)%20(1)%20(1).png?alt=media&#x26;token=1f1d0e44-cd6d-49ad-89ee-975615626f28" alt=""><figcaption></figcaption></figure>

This section offers a detailed breakdown of [FCTR](https://docs.factor.fi/governance/fctr-token/..#fctr)'s token allocation, shedding light on the purpose of each allocation category and the corresponding vesting schedules.

<table><thead><tr><th width="311">Category</th><th width="213">Allocation</th><th>Vesting Period</th></tr></thead><tbody><tr><td>Fair Launch</td><td>10%</td><td>Fully unlocked</td></tr><tr><td>FCTR Liquidity Provision*</td><td>5%</td><td>Fully unlocked</td></tr><tr><td>Ecosystem Incentives</td><td>15.8%</td><td>2 years from <a href="..#at-a-glance">TGE</a></td></tr><tr><td>Community Bootstrapping</td><td>4.2%</td><td>1 year from <a href="..#at-a-glance">TGE</a></td></tr><tr><td>Team</td><td>15%</td><td>2 years from <a href="..#at-a-glance">TGE</a></td></tr><tr><td>Treasury Reserve</td><td>50%</td><td>4 years from <a href="..#at-a-glance">TGE</a></td></tr></tbody></table>

*\*Ecosystem Incentives subcategory*

## Categories

### Fair Launch (10%)

10,000,000 [FCTR](https://docs.factor.fi/governance/fctr-token/..#fctr) tokens were allocated to the Fair Launch via Camelot DEX. These were fully unlocked and publicly distributed to the Fair Launch participants.

<table><thead><tr><th width="294">Fair Launch Details</th><th>Value</th></tr></thead><tbody><tr><td>Token Allocation</td><td>10,000,000 FCTR</td></tr><tr><td>Launch Period</td><td>96 hours (4 days)</td></tr><tr><td>Start Date</td><td>Feb-20-2023 06:00:00 PM +UTC</td></tr><tr><td>End Date</td><td>Feb-24-2023 06:00:00 PM +UTC</td></tr><tr><td>Participating Addresses</td><td>13,394</td></tr><tr><td>Total Raised</td><td>7,578,366 USDC</td></tr></tbody></table>

**Related Links**

{% embed url="<https://app.camelot.exchange/launchpad/factor/>" %}

{% embed url="<https://dune.com/aleawu/camelot-factor-fair-auction>" %}

### FCTR Liquidity Provision (5%)

5,000,000 [FCTR](https://docs.factor.fi/governance/fctr-token/..#fctr) tokens were allocated as protocol-owned market making liquidity on Camelot V3 ([FCTR-USDC](https://app.camelot.exchange/pools/0xc39D8c1F4e09133738A3f97C63C7E3300035d2bD), [FCTR-ETH](https://app.camelot.exchange/pools/0x90635Ddf0B7fB9AEB3d9De749b815374302DBbDe)). This ensured sufficient market depth for the buying and selling of FCTR on the open market. All tokens were fully unlocked since TGE.

### Ecosystem Incentives (15.8%)

15,800,000 [FCTR](https://docs.factor.fi/governance/fctr-token/..#fctr) tokens are designated as ecosystem incentives that are distributed to Factor users via mechanisms such as  [Factor Scale](https://docs.factor.fi/governance/factor-scale) and [Factor Boost](https://docs.factor.fi/governance/factor-boost). Through targeted use of FCTR tokens, the incentives are meant to bolster greater adoption and long-term engagement with the Factor platform. These tokens are linearly vested over 24 months.

### Community Bootstrapping (4.2%)

The community bootstrapping allocation represents 4,200,000 [FCTR](https://docs.factor.fi/governance/fctr-token/..#fctr) tokens, priced at $0.05, and subject to a 12 months linear vesting schedule with a 30-day cliff. No tokens were available at [Token Generation Event](https://docs.factor.fi/governance/fctr-token/..#at-a-glance) (TGE). This allocation supported smart contract audits, development, legal, and marketing efforts required for the platform's launch.

### Team (15%)

The team allocation amounts to 15,000,000 [FCTR](https://docs.factor.fi/governance/fctr-token/..#fctr) tokens and is subjected to a 24-month vesting period with a 30-day cliff.  Team allocation supports the development and operations of the Factor platform including product development as well as marketing/partnership initiatives.

No team tokens were available at [TGE](https://docs.factor.fi/governance/fctr-token/..#at-a-glance). Note that while team tokens are unvested, they do not accrue [veFCTR](https://docs.factor.fi/governance/fctr-token/..#vefctr). To accrue veFCTR, the tokens must be vested, claimed and staked, ensuring fair distribution and rewards for all ecosystem participants.

### Treasury Reserve (50%)

50,000,000 [FCTR](https://docs.factor.fi/governance/fctr-token/..#fctr) tokens were allocated to the [FactorDAO](https://docs.factor.fi/governance/factordao) Treasury Reserve, which is vested over 4 years. This reserve is used for FactorDAO contributor compensations (via [Factor Contributors](https://docs.factor.fi/community/factor-contributors) program), DAO-to-DAO token swaps, and any other future needs of the FactorDAO. This allocation helps ensure the long-term sustainability and growth of the Factor ecosystem.

## Emissions

[FCTR](https://docs.factor.fi/governance/fctr-token/..#fctr) reaches its full circulating supply of 100,000,000 tokens 4 years after [TGE](https://docs.factor.fi/governance/fctr-token/..#at-a-glance). The max supply is capped and there are no inflationary mechanisms beyond this.

<figure><img src="https://1496012388-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FSEwRza4r80hmJsISwKFf%2Fuploads%2FSM21gxjXzXtueYvtN9uR%2Fimage.png?alt=media&#x26;token=2eb29e25-01b4-40f4-aa1a-2b61bd1594b2" alt=""><figcaption></figcaption></figure>