Supply Dynamics

3.1 Initial Distribution

• Liquidity Mining: 40% allocated to reward liquidity providers and incentivize adoption.

• Development Fund: 20% reserved for protocol development and audits.

• Community Incentives: 20% allocated to partnerships, ecosystem growth, and marketing.

• Team and Advisors: 10% vested over 4 years to align incentives.

• Treasury Reserve: 10% for unforeseen expenses and future initiatives.

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3.2 Emission Schedule

Controlled Release

The Nebula token has a capped total supply, with tokens released according to a predefined schedule that reduces emissions over time.

Liquidity Bootstrapping

Initial high emissions are used to bootstrap liquidity and incentivize early adopters. Emissions gradually decrease to create scarcity and value appreciation.

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3.3 Burn Mechanism

Deflationary Pressure

Regular token burns reduce the circulating supply, potentially increasing the token's value and benefiting all holders.

Protocol Usage Tied Burns

The amount of tokens burned is proportional to the protocol's usage, aligning tokenomics with platform growth.