# 4. Tokenomics

**4.1 Token Utility**

AVIAH Token serves multiple purposes within the AVIAH.ai ecosystem:

1. **Virtual Human Creation**
   * **Locking Mechanism**: Developers must acquire and lock AVIAH tokens to create virtual humans.
2. **Feature Activation**
   * **Premium Features**: Additional functionalities and customization options require AVIAH tokens to unlock.
3. **API Consumption**
   * **Service Usage**: Each API call consumes a predetermined amount of AVIAH tokens, ensuring that developers pre-purchase AVIAH for continued service use.
4. **NFT Rewards**
   * **Revenue Sharing**: NFT holders earn AVIAH tokens based on the performance of their virtual characters.
5. **Governance**
   * **Decision Making**: AVIAH holders participate in governance proposals and voting to shape the platform’s direction and priorities.
6. **Staking Benefits**
   * **Developers**: Receive discounted API usage fees by staking AVIAH.
   * **General Users**: Attain enhanced governance influence through staking.

**4.2 Token Distribution**

AVIAH tokens are allocated to support various aspects of ecosystem growth:

<div align="center"><figure><img src="https://4130672011-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F8XneB6cTjyB5qeUF33pi%2Fuploads%2FWs5EFG4kRAIHneq60H66%2Ftoken_distribution.png?alt=media&#x26;token=66faf830-4bfc-4969-98e9-9712acf5b095" alt=""><figcaption><p>Token Distribution</p></figcaption></figure></div>

* **Development Fund (30%)**: Ongoing platform development, feature enhancements, and operational costs.
* **Ecosystem Growth (30%)**: Developer incentives, early adopter rewards, and initiatives for broad platform adoption.
  * **Liquidity Provision**: 10% (500,000,000 AVIAH) is allocated to supply liquidity on major DEXs (e.g., Serum, Raydium) to stabilize trading and reduce price volatility.
* **NFT Rewards (10%)**: A dedicated pool to distribute AVIAH rewards to NFT holders.
* **Marketing & Partnerships (15%)**: Promotional activities, strategic alliances, and community expansion.
* **Team & Advisors (10%)**: Reserved for the founding team and advisors.
  * **Vesting Schedule**: Vesting will occur over a 5-year period with a 12-month cliff. Following the 12-month cliff, the tokens will vest in equal monthly installments over the subsequent 48 months.
* **Reserve (5%)**: For future funding needs, strategic partnerships, and unforeseen expenses.

**4.3 Token Supply and Contract Address**

AVIAH tokens are issued on the Solana blockchain, benefiting from high throughput and low transaction costs. The total supply is capped at 5,000,000,000 AVIAH, preserving scarcity and value over time.

* **Contract Address :** HdYskPuX5cBApzGqFtoyKdzLxfsLCQxucQfmX2FiquWo

**4.4 Staking Mechanism**

Staking is central to the AVIAH ecosystem, incentivizing both developers and users to engage over the long term.

* **Staking Pools**
  * AVIAH holders can stake their tokens to earn rewards such as additional AVIAH or access to exclusive platform features.
* **Developers**
  * **Discounted API Fees**: Developers who stake AVIAH receive reduced fees for API usage, thus encouraging sustained platform engagement.
* **General Users**
  * **Enhanced Governance Influence**: AVIAH staking increases voting power, allowing users to have a more substantial impact on major platform decisions.

**4.5 Governance Model**

AVIAH token holders can actively shape the platform’s evolution through a decentralized governance structure.

* **Proposal Submission**
  * A minimum amount of AVIAH (e.g., 1,000 AVIAH) must be locked to submit platform improvement proposals or strategic initiatives.
* **Voting Power**
  * The more AVIAH tokens a holder stakes, the greater their voting weight.
* **Quorum Requirements**
  * At least 20% of the total staked AVIAH tokens must participate for a proposal to be valid.
* **Voting Period**
  * Each proposal remains open for voting for two weeks.
* **Execution**
  * Approved proposals execute automatically via smart contracts, ensuring transparency and security.

**4.6 Deflationary Mechanisms**

To maintain long-term token value and prevent inflation, AVIAH implements several burn mechanisms:

* **Transaction Burns**: 1% of AVIAH tokens consumed for each API call is permanently burned.
* **Feature Activation Burns**: 2% of AVIAH tokens used to unlock premium features are burned.
* **NFT Reward Burns**: 0.5% of AVIAH tokens distributed to NFT holders are burned.
* **Periodic Buybacks**: The platform allocates a portion of its revenue to buy back AVIAH tokens from the market and burn them.
* **Additional Burns**: Burn events may be triggered during major platform milestones.
* **Total Burn Rate**: Approximately 3.5% of AVIAH tokens used within the ecosystem are removed from circulation, gradually decreasing the supply.

**4.7 Token Allocation Table**

<table><thead><tr><th width="129.3333740234375">Allocation</th><th width="106.9998779296875" align="center">Percentage (%)</th><th width="98.666748046875" align="center">TGE Unlock (%)</th><th width="105.666748046875" align="center">Cliff Period (months)</th><th width="99.333251953125" align="center">Vesting Period (months)</th><th>Release Schedule</th></tr></thead><tbody><tr><td>Development Fund</td><td align="center">30.0%</td><td align="center">0%</td><td align="center">12</td><td align="center">48</td><td>Monthly linear unlock after 12-month cliff</td></tr><tr><td>Ecosystem Growth</td><td align="center">20.0%</td><td align="center">0%</td><td align="center">12</td><td align="center">48</td><td>Monthly linear unlock after 12-month cliff</td></tr><tr><td>Liquidity Provision</td><td align="center">10.0%</td><td align="center">0%</td><td align="center">0</td><td align="center">-</td><td>Released flexibly as needed for liquidity provision on exchanges or platforms</td></tr><tr><td>NFT Rewards</td><td align="center">10.0%</td><td align="center">0%</td><td align="center">0</td><td align="center">-</td><td>Distributed as claimed to NFT holders</td></tr><tr><td>Marketing &#x26; Partnerships</td><td align="center">15.0%</td><td align="center">0%</td><td align="center">12</td><td align="center">48</td><td>Monthly linear unlock after 12-month cliff</td></tr><tr><td>Team &#x26; Advisors</td><td align="center">10.0%</td><td align="center">0%</td><td align="center">12</td><td align="center">48</td><td>Monthly linear unlock after 12-month cliff</td></tr><tr><td>Reserve</td><td align="center">5.0%</td><td align="center">0%</td><td align="center">0</td><td align="center">-</td><td>Released as needed for strategic purposes</td></tr></tbody></table>