# 4.3.1 Token Allocation

**The SquidVerse governance token allocation model is designed to enable co-building, community-driven growth, and long-term sustainability.**\
**The overall structure balances player incentives, ecosystem liquidity, team building, market expansion, and decentralized governance—injecting lasting energy and value growth into the platform.**

<table data-header-hidden><thead><tr><th width="184"></th><th width="107.66656494140625"></th><th></th></tr></thead><tbody><tr><td><mark style="background-color:green;"><strong>Module</strong></mark></td><td><mark style="background-color:green;"><strong>Proportion</strong></mark></td><td><mark style="background-color:green;"><strong>Usage Description</strong></mark></td></tr><tr><td><strong>Game Emissions</strong></td><td><strong>40%</strong></td><td><strong>Incentivize players to participate in PVE/PVP and all gameplay activities—driving ecosystem circulation and user activity, serving as the core engine for long-term growth.</strong></td></tr><tr><td><strong>LP Dividend Rewards</strong></td><td><strong>30%</strong></td><td><strong>Encourage users to provide liquidity, ensuring deep pools and market stability. The dividend mechanism supports dynamic adjustment based on hash power, lock-up, and duration.</strong></td></tr><tr><td><strong>Foundation Reserve</strong></td><td><strong>5%</strong></td><td><strong>For future strategic investment, ecosystem support, and long-term platform development, enhancing ecosystem resilience and innovation.</strong></td></tr><tr><td><strong>Community Airdrop</strong></td><td><strong>5%</strong></td><td><strong>For community expansion, OG contributor rewards, marketing, and new user incentives—fueling rapid growth and ecosystem virality.</strong></td></tr><tr><td><strong>Public Sale</strong></td><td><strong>5%</strong></td><td><strong>For public fundraising or pre-sale, expanding the token holder base and supporting early capital needs.</strong></td></tr><tr><td><strong>Initial Liquidity</strong></td><td><strong>5%</strong></td><td><strong>To provide initial liquidity on CEX/DEX listings, ensuring smooth token trading and market safety.</strong></td></tr><tr><td><strong>Marketing</strong></td><td><strong>5%</strong></td><td><strong>For marketing, brand exposure, channel cooperation, and KOL campaigns—driving global adoption and brand growth.</strong></td></tr><tr><td><strong>Team &#x26; Advisors</strong></td><td><strong>5%</strong></td><td><strong>Long-term incentives for the core team and advisors—continuously powering platform innovation and delivery, with 5-year linear vesting and dynamic price-gated release.</strong></td></tr></tbody></table>

***

### **Team & Advisor Release Mechanism**

**The total team and advisor allocation is 5% of total tokens. To ensure sustainable growth and long-term commitment, this portion is subject to strict linear vesting:**

* **TGE Unlock:** Only 10% of the team allocation (i.e., 0.5% of total supply) is unlocked at TGE (Token Generation Event), mainly for core construction expenses—tech R\&D, payroll, security audits, and ecosystem expansion.
* **Ongoing Release:** The remaining 90% vests linearly over 5 years, with dynamic price gates and multiple security constraints to fully align ecosystem interests and prevent short-term dumping.

**All team token releases and usage are 100% on-chain, publicly visible, with multi-sig controls and third-party audits to ensure compliance and alignment.**

* **Each unlock comes with a 6-month cliff, and every unlock requires that the token’s current price has been at least 2x the previous unlock price for 30 consecutive days.**
* **Maximum 5% of the allocation can unlock per round, with progressively higher price gates required for each subsequent unlock.**
* **All unlocks and distributions are fully transparent and traceable on-chain, under multi-sig and third-party audit supervision.**

***

### **Design Philosophy**

* **User-Centric:** The majority of tokens incentivize GameFi and DeFi ecosystem participants, driving community-powered and sustainable platform growth.
* **Long-Term Incentives:** Strict vesting and dynamic price mechanisms align the interests of the core team and the ecosystem, preventing short-term sell pressure.
* **Community Co-Building:** Sufficient reserves support airdrops, marketing, and public sales, enabling decentralized token holding and a robust, growing community.
* **Transparency:** All allocation and vesting nodes are 100% on-chain and publicly viewable, with real-time data, DAO community governance, and third-party audit oversight.

> *<mark style="background-color:red;">**The SquidVerse token allocation model is built for fairness, transparency, and long-term value growth—truly empowering every participant and building the future of the ecosystem together.**</mark>*


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