> ## Documentation Index
> Fetch the complete documentation index at: https://dubhe.mintlify.site/llms.txt
> Use this file to discover all available pages before exploring further.

# Token Economics

> Learn about the DUBHE token distribution, utilities, and economic mechanisms.

# Token Economics

## Token Economy

### Overview

Dubhe adopts a **dual-mechanism** of programmable fees and burn: DUBHE is charged per interaction and a portion of revenue is burned to maintain scarcity and network security.

### Design Principles

| Principle                    | Description                                                                                                        |
| ---------------------------- | ------------------------------------------------------------------------------------------------------------------ |
| **Contribution-Based**       | Allocation, inflation, and rewards are distributed based on on-chain contributions from projects, nodes, and users |
| **Elastic Structure**        | Key metrics (inflation, fee caps) are on-chain parameterized via governance for market and regulatory adaptability |
| **Sustainable Growth**       | Combines fee burn with ecological reinvestment for long-term deflationary expectations                             |
| **Simple & Transparent**     | All models and spending are on-chain and publicly auditable                                                        |
| **Data-Driven Optimization** | Metrics inform governance proposals to iteratively improve parameters                                              |

### DUBHE Token Utilities

* **Set Fees**: Users writing data on Dubhe Engine-based apps pay \$DUBHE per `set()` operation.
* **Collateral**: Dubhe Channel requires deposits for fraud-proof guarantees and data relay service.
* **Staking Security**: Token holders can delegate DUBHE to DubheOS nodes and earn block validation rewards.
* **Governance Voting**: Token holders vote on upgrades, treasury, and parameter changes via DubheOS.

***

## Dubhe Foundation

### Dubhe Ecosystem Fund (DEF)

* **Service Contribution Rewards (SCR)**: High TPS app growth incentives.
* **Developer Programs**: Hackathons, education, academic partnerships, DAO grants.
* **Strategic Investment**: In collaboration with Obelisk Mesh.

### Dubhe Infrastructure Fund (DIF)

* **Core Development**: Dubhe Engine, Channel, and OS.
* **Market & Community**: Ops, legal, marketing.
* **Liquidity Provision**: CEX/DEX market-making and insurance reserves.

***

## DUBHE Token Distribution

| Pool                          | Allocation | Cliff / Vesting             |
| ----------------------------- | ---------- | --------------------------- |
| **Obelisk Labs (Mesh)**       | **7%**     | 12m cliff / 24m linear      |
| **Core Contributors**         | **17%**    | 12m cliff / 36m linear      |
| **Seed Investors**            | **6%**     | 18m cliff / 36m linear      |
| **Series-A Investors**        | **6%**     | 18m cliff / 36m linear      |
| **Dubhe Foundation**          | **18%**    | None / 48m linear           |
| **Ecosystem Reserve**         | **8%**     | DAO triggered               |
| **Launchpad**                 | **3%**     | Fully unlocked at TGE       |
| **CEX Lock**                  | **2%**     | 24m contract lock           |
| **DEX PCL**                   | **4%**     | Chain-based, protocol-owned |
| **Community Incentives**      | **4%**     | 3m cliff / 12m linear       |
| **Builders Bonus**            | **2%**     | KPI-based / 6m lock         |
| **Investors Reserve (+M\&A)** | **3%**     | DAO/Board approval          |
| **Alliance & Strategic**      | **7%**     | 6m cliff / 24m linear       |
| **Total**                     | **100%**   | —                           |

***

### 60-Month Unlock Curve Highlights:

* **TGE Initial Circulating**: ≈ 7% (Launchpad + DEX + Gas LP)
* **12m**: \~22% (Labs & team cliffs begin)
* **24m**: Linear unlock continues → \~42%
* **36m**: Seed/A rounds + community incentives completed → \~60%
* **48m**: Foundation, strategic pool mostly unlocked → \~75%
* **60m**: Final unlocks → **≈ 76%**, pending DAO trigger for Ecosystem/Reserves

<Note>
  The token distribution follows a carefully designed 60-month vesting schedule to ensure long-term alignment and prevent market dumping. Visual representations of the unlock curve and distribution breakdown are referenced in the original documentation with accompanying charts.
</Note>

***