🪙Tokenomics
Aurum Protocol’s tokenomics are carefully designed to align incentives, ensure long-term sustainability, and reward early adopters and contributors. The total token supply is capped at 20 million AUR.
At TGE only 3m tokens will be minted as per liquidity needs . The remaining tokens will be minted as per vesting schedules and unlocks . The tokens cannot be minted more than 20M as per total supply
1. Token Allocation
User Incentives (63%)
12.6 million AUR
Reserved for user incentives, including liquidity mining, staking rewards, Bribes to attract liquidity and ecosystem development.
Incentives are distributed
over 2 years
Team (15%)
3 million AUR
Allocated to the founding team and core contributors.
Vesting
1-year lockup followed by linear unlock over 1 year.
Liquidity (15%)
3 million AUR
15% of the total supply is set aside for liquidity for users to buy/sell sufficiently . Some of this will be added at launch(TGE) and the remaining will be added from the fees/yield generated into the pool until all of the liquidity is added
Early Investors (5%)
1 million AUR
Allocated to early investors who supported the protocol during its initial phases . These funds will go 100% towards adding liquidity at TGE and Development
Vesting
0% unlocked at TGE, with the remaining tokens unlocked linearly over 6 months
Partner Airdrop
(2%) 400k AUR
This Airdrop will go towards all users of partners of AURUM in a locked AUR redeemable after 6 months from TGE
2. Vesting and Unlock Mechanisms
Incentives (63%)
Distribution Period: 2 years
Claim Mechanism:
Tokens earned through incentives on the lending market are initially locked.
After 6 months, users can exchange locked tokens for unlocked tokens and begin claiming rewards.
Bribes used on dexes to grow liquidity are however claimable in an unlocked form
Team (15%)
1-Year Lockup: No tokens can be claimed during the first year.
Linear Unlock: After the lockup, tokens are released linearly over 1 year.
Early Investors (5%)
TGE Unlock: 0% of tokens unlocked immediately.
Remaining Tokens: Distributed linearly over the next 6 months
3. Aurum Utility
The AUR token serves as the backbone of the Aurum ecosystem, offering diverse utilities that drive engagement and ecosystem growth:
Governance
AUR holders can participate in the governance of the protocol by voting on proposals related to protocol upgrades, risk parameters, and treasury management.
Governance ensures that Aurum remains community-driven and adaptable to evolving user needs.
Staking Rewards
Users can stake AUR tokens to earn 50% of protocol revenue while contributing to the security and stability of the protocol.
Staking incentivizes long-term token holding and aligns user incentives with protocol growth.
Fee Discounts
AUR holders enjoy reduced fees on borrowing, lending, and other protocol interactions, encouraging active participation within the ecosystem.
Deflationary Mechanisms
The protocol has plans of introducing token burns or other deflationary mechanisms in the future to enhance token value and control supply.
LP farming
Token holders can provide liquidity in dexes with AUR token and farm High aprs while earning fees from trading giving them another source of income
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