# 📊 Tokenomics ## **Indigo Protocol Tokenomics 🔄** Distribution Breakdown * Indigo Protocol’s tokenomics ensures a balanced and sustainable economic model, distributing the INDY token across various sectors to incentivize participation, reward users, and fund ongoing development over a 5-year span. Here’s a breakdown of the INDY token distribution: * 54.13% DAO Rewards * 13.87% DAO Treasury * 5% Governance Participation * 1% Protocol Owned Liquidity * 1% Launch Airdrop * 25% Team & Labs Treasury **Detailed Token Allocation 📜** * INDY tokenomics are strategically designed to support the ecosystem's growth, governance, and operational efficiency. A significant majority, 54.13%, is allocated to DAO Rewards, ensuring that users who participate actively in the ecosystem are incentivized. The Team & Labs Treasury receives 25%, a share that funded initial development and operational support by the core team behind Indigo. An additional 13.87% is reserved for the DAO Treasury, which funds future initiatives, development, and proposals approved by the community. Governance participation is encouraged with a dedicated 5% of tokens rewarding users for engaging in the protocol's decision-making processes. To ensure token trading liquidity post-launch, 1% of INDY tokens were designated as Protocol Owned Liquidity. Finally, to distribute tokens widely and engage a broad user base, 1% was allocated for the Launch Airdrop in 2022, promoting initial liquidity and adoption. INDY is set to reach its total supply cap of 35 million by 2030, providing a generous 8-year runway to achieve its strategic goals, thereby ensuring a gradual and balanced token release into the market while the protocol reaches self-sustainability from pure usage. This phased approach underpins the protocol’s commitment to long-term development and community engagement. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.indigoprotocol.io/readme/tokenomics.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.