# Tokenomics and Emissions The initial supply of `$SKY` is 100M. Out of this, the initial circulating supply will be 28.16M ($1.88M), with the remaining amount locked or vested.
**Note:** Any unsold tokens from the IDO/Token Sale Allocation will be used for ongoing protocol development or future fundraising efforts The token distribution will be structured as the following: ## $SKY (Initial Circulating Supply) * **11.66M** for the token sale unlocked immediately (11.66%) * **7M** for POL — Protocol Owned Liquidity (i.e. for ETH/SKY pools) (7%) * **9M** for the Development and Marketing Fund. The other half of the fund is linear vested. * **0.5M** for the Ecosystem Rewards. The other part of the rewards are linear vested (0.5%) ## $SKY (Locked Supply) * **9M** for the Development and Marketing Fund (9%) with a 2-year linear vesting period * **6M** for the Skydrome team (6%) 12-months cliff with a 4-year linear vesting period * **3M** for the pre-mining (3%) with a 1 month lockup (Starting from one week after the end of the presale) * **4.5M** for the Ecosystem Rewards. Those funds are linear vested of a time-frame of 2 years (4.5%) ## $veSKY (Locked as veSKY NFTs) ***Note:** Locked for 2 years in $veSKY of various sizes.* * **33.33M** for the Ecosystem Fund and Initial Liquidity Incentives (33.33%) — For activities boosting the Skydrome Ecosytem for example for for partner protocols / communities or directing emissions to selected pools, etc. * **16M** for the DAO Treasury (16%) ## Utilities Skydrome utilizes two tokens for managing its utility and governance: * **`$SKY`** — ERC-20 utility token of the protocol * **`$veSKY`** — ERC-721 governance token in the form of an NFT (non-fungible token) `$SKY` is used for rewarding liquidity providers through emissions. `$veSKY` is used for governance. Any $SKY holder can vote-escrow their tokens and receive a `$veSKY` (also known as veNFT) in exchange. Additional tokens can be added to the `$veSKY` NFT at any time. The lock period (also referred to as the vote-escrowed period, hence the ve prefix) can be up to 4 years, following the linear relationship shown below: * 100 `$SKY` locked for 4 years will become 100 `$veSKY` * 100 `$SKY` locked for 1 year will become 25 `$veSKY` The longer the vesting time, the higher the voting power (voting weight) and rewards the `$veSKY` holder receives.\ \ **Note:** Any unsold tokens from the IDO/Token Sale Allocation will be used for ongoing protocol development or future fundraising efforts. ## ve(3,3) Mechanics Skydrome mechanics incorporate a blend of two DeFi concepts: * **Vote-Escrow** — first introduced by Curve to bolster incentives for long-term token holders * **Staking/Rebasing/Bonding or (3,3) game theory** — designed by Olympus DAO Combined, the *ve(3,3)* mechanism rewards behaviors correlated with Skydrome’s success, such as liquidity provision and long-term token holding. Liquidity providers receive `$SKY` emissions, and `$veSKY` holders receive protocol fees, bribes, rebases, and governance power. ## Emissions * Weekly emissions start at 1M `$SKY` (1% of the initial supply) and decay at 1% per week (epoch). * `$veSKY` holders receive a rebase proportional to epoch LP emissions and the ratio of `$veSKY` to `$SKY` supply, thus reducing vote power dilution for `$veSKY`! * Rebase for $veSKY Holders: $veSKY holders get a rebase that's proportional to epoch LP emissions and the ratio of $veSKY to $SKY supply. This minimizes vote power dilution for $veSKY holders. * Rebase Calculation Formula:
* Note: The supply of $veSKY doesn't impact the weekly LP emissions. * Note: The emissions and individual parameters, such as min/max emissions, team rate, decay, etc., are variable and will be adjusted by protocol parameter optimization every week. The formulas and schedules in this documentation indicate only the planned release and are subject to change on a weekly basis. ### Projected Emission Schedule

SKY Emissions

## Gauge Voting Holders of $veSKY get to determine which liquidity pools are granted emissions during a specific epoch by casting votes on their favored liquidity pool gauges. $SKY emissions will be apportioned based on the total votes a liquidity pool secures. In reciprocation, voters are awarded 100% of the trading fees and incentives amassed through the liquidity pool they advocate for. ## Whitelisting While Skydrome encourages permissionless liquidity pools, gauge formation is exclusive to whitelisted tokens. A segment of the partner integration process involves token whitelisting where necessary. Partners have the liberty to propose added tokens for whitelisting. ## Disclaimer The token distribution and token supply, as outlined in the Documentation, are indicative only and may be subject to reasonable adjustments based on further determinations. Do not treat any of this documentation as financial advice. We will not take any responsibility for its accuracy, errors, or any parts that may already be outdated. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.skydrome.finance/features/tokenomics-and-emissions.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.