> For the complete documentation index, see [llms.txt](https://docs.usd.ai/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.usd.ai/governance/tokenomics.md).

# Tokenomics

Full $CHIP token distribution. Vesting schedules and supply details.

<figure><img src="https://1324162391-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FyihtTguEhuWiLBn09qwl%2Fuploads%2FlUnsWL41cS7ETgXLxyjA%2Fchip-token-unlock.png?alt=media&amp;token=fbbaf9e9-8b2c-4687-a2ed-402ae997c27a" alt=""><figcaption></figcaption></figure>

<figure><img src="https://1324162391-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FyihtTguEhuWiLBn09qwl%2Fuploads%2FTt56s5xfAl0NH0wNsuVe%2Fchip-token-distribution%20(1).png?alt=media&amp;token=47bd9d78-ceb4-4816-9301-1461fa4a100a" alt=""><figcaption></figcaption></figure>

{% hint style="info" %}
For governance utility and staking context, start with the [CHIP overview](/governance/chip.md).
{% endhint %}

**Ecosystem Bootstrapping**\
27.5% of CHIP is reserved to bootstrap protocol liquidity across 2 core objectives: (a) yield origination and (b) capital formation. The first 10% was distributed during Season 1 (The Allo Game). The remaining allocation will fund [USD.AI](http://USD.AI) growth initiatives, including airdrops, upcoming incentive programs, and other targeted incentives for the "hard-to-bootstrap" parts of the protocol that is necessary to reach broader adoption

{% hint style="info" %}
Users can engage with current incentive programs and [Earn Allo Points](https://app.usd.ai/rewards).
{% endhint %}

**Reserve**\
19.8% is the residual reserves for future grants, partnerships, research & development, that will benefit and establish [USD.AI](http://USD.AI) protocol as the interest rate of artificial intelligence.

**Core contributors**\
This allocation of CHIP is reserved for USD.AI Inc. contributors who are responsible for building, launching, and operating the [USD.AI](http://USD.AI) Protocol. Vesting is structured to align long term execution: 0% vests before month 12, 33% vests at month 12, and the remaining 67% vests in equal monthly installments over the following 24 months. The allocation covers both current and future team members supporting the core workstreams that the Foundation mandates in service of the [USD.AI](http://USD.AI) Protocol, including technology development, deal origination, and protocol distribution.

**Investors**\
The investor allocation reflects CHIP commitments granted to early backers who financed the protocol’s technology build out and the initial capital required for launch readiness. These tokens are subject to a locked release schedule: 0% unlocks before month 12, 33% unlocks at month 12, and the remaining 67% unlocks in equal monthly increments over the subsequent 24 months.


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