> ## Documentation Index
> Fetch the complete documentation index at: https://initialabs-docs-evm-erc20-minievm-alignment.mintlify.site/llms.txt
> Use this file to discover all available pages before exploring further.
# Tokenomics
## Introduction
Initia's native token, \$INIT, has a fixed supply of 1 billion (1,000,000,000)
tokens. These tokens are split across eight major categories as outlined below.
| Category | Amount | % of Supply | Vesting |
| ----------------------------- | ------ | ----------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| Foundation | 77.5M | 7.75% | 50% upfront, remaining 50% vested every 6 months over 48 months |
| Protocol Developers | 150M | 15.00% | 25% after 12 month cliff, remaining 75% linearly vested over 36 months |
| Protocol Sales (Investors) | 152.5M | 15.25% | 25% after 12 month cliff, remaining 75% linearly vested over 36 months |
| Enshrined Liquidity & Staking | 250M | 25.00% | 5% will be released each year on a block-by-block basis, with a slightly shortened schedule due to [accelerated emissions](https://forum.initia.xyz/t/inflation-correction-and-unstaking-subsidy-plan) in the first month. |
| VIP Rewards | 250M | 25.00% | 7% released per year, linearly distributed over 12 months |
| Binance Launch Campaign | 60M | 6.00% | 100% unlocked |
| Airdrop | 50M | 5.00% | 100% unlocked |
| Echo.xyz Community Sale | 10M | 1.00% | 25% of the total amount on the 12/15/18/24th month post THE |
## Breakdown
### Foundation
**77,500,000 INIT (7.75% of total supply)**
The Initia Foundation's main goal is to advance the Interwoven Economy, help
redefine the boundaries of multichain capabilities, and ensure a vibrant
ecosystem of diverse applications. To this end, 7.75% of the total token supply
is set aside towards the Initia Foundation for a variety of endeavors—including
initial liquidity bootstrapping for Enshrined Liquidity, genesis validator
delegations, and future strategic initiatives and ecosystem grants.
### Protocol Developers (Team)
**150,000,000 INIT (15% of total supply)**
Protocol developers, including current and future Initia team members and
contributors, have been allocated 15% of the supply in aggregate. All recipients
of tokens from this category are subject to a 4 year vesting period that
includes a 12 month lock and a 36 month unlocking period.
### Protocol Sales (Investors)
**Amount: 152,500,000 INIT (15.25% of total supply)**
The Interwoven Economy's progress would not have been possible without the early
backing of Initia by its investors. Across three total rounds of fundraises,
Initia has been able to maintain dilution to investors by 15.25% of the total
supply, marking a distinct departure from many other L1 chains with high
investor allocations. Similar to tokens allocated to Protocol Developers, tokens
in the Protocol Sales category are subject to a 4 year vesting period that
includes a 12 month lock and a 36 month unlocking period.
### Enshrined Liquidity & Staking Rewards
**250,000,000 INIT (25% of total supply)**
At the core of the Interwoven Ecosystem is Initia's Enshrined Liquidity
mechanism, which replaces the typical L1 PoS system. In Enshrined Liquidity,
capital is put to effective use through liquidity provision and allows users to
simultaneously provide L1 economic security while earning staking rewards,
trading fees, and external ecosystem incentives allocated for voting in VIP
gauge votes. Initially, EL & staking rewards have a block-by-block release rate
of 5% per year (12,500,000 INIT per year).
Due to a
[governance proposal](https://forum.initia.xyz/t/inflation-correction-and-unstaking-subsidy-plan/201/10)
to fix inflation rate, the overall emission schedule has been shortened slightly
to stay within the 250M INIT cap.
### Vested Interest Program (VIP) Rewards
**250,000,000 INIT (25% of total supply)**
Vested Interest Program is Initia's novel and dominant incentive mechanism that
is used to align the interests of all the participants in the Interwoven
Economy, including application end users, application builders, and L1
stakeholders. These rewards are wholly allocated to the community of users. VIP
rewards are distributed in escrowed form and can be vested through maintaining
VIP KPIs over several epochs. Similar to staking rewards, VIP rewards have an
initial release rate of 7% per year (17,500,000 INIT per year).
### Binance Launch Campaign
**60,000,000 INIT (6% of total supply)**
For the initial CEX liquidity bootstrapping, 6% of the total supply is allocated
towards Binance's Launch Campaign.
### Airdrop
**50,000,000 INIT (5% of total supply)**
Initia's airdrop will initially distribute 50,000,000 INIT tokens (5% of the
total network supply) to network testers, advocates, and users of the technology
who have helped make Initia's vision of an interwoven multichain world possible.
These tokens will be immediately available on genesis for eligible participants
to claim.
### Echo.xyz Community Sale
**10,000,000 INIT (1% of total supply)**
Tokens in this category have been allocated to the community of users who
participated in Echo.xyz's investment round. Tokens in this category unlock in
four equal tranches 12/15/18/24 months post-genesis.
## Release Schedule
The monthly and annual release schedules for the Initia token for the first four
years are shown below.
**Annual Release Schedule**
**Monthly Release Schedule**
