> For the complete documentation index, see [llms.txt](https://weco-protocol.gitbook.io/weco-protocol/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://weco-protocol.gitbook.io/weco-protocol/basics/technical-architecture-1.md).

# Token Economy & Governance

#### Token Types & Roles

1. WECO Native/Utility Token
   * Fan Engagement/Interaction: Invest to your favorite digital human & related IP, content creation, and more
   * Platform Fees & Rewards: Used for gas offsets within the ecosystem and to earn yields from DeFi pools.<br>
2. RWA NFTs
   * Fractional Ownership: Large asset NFTs fractionalized into tradable tokens or sub-NFTs.
   * Royalty & Revenue Sharing: On-chain distribution of revenues to token holders for entertainment, property, or IP.<br>
3. Derivative Liquidity Tokens
   * Staking and LP Tokens: Represent user shares in liquidity pools, yielding transaction fee rewards.
   * Liquid Staking Derivatives (LSD): Allow stakers to utilize staked tokens as collateral in other DeFi protocols, compounding earning potential.

#### Distribution & Incentives

**Allocation Breakdown:**

| **Category**                                  | **Allocation (%)** | **Tokens**  | **Purpose & Details**                                                                                                                                                                                                                                                                                 |
| --------------------------------------------- | ------------------ | ----------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| **Ecosystem & Community Incentives**          | **30%**            | 300,000,000 | <p>- <strong>User Rewards:</strong> Incentivize active community participation, content creation, and platform engagement.<br>- <strong>Developer Grants:</strong> Fund innovative projects and applications built on the WECO Protocol.</p>                                                          |
| **Public Sale & Liquidity**                   | 3&#x30;**%**       | 300,000,000 | <p>- <strong>Initial Listings:</strong> Fuel exchange listings (starting with Bitget in 2025) and subsequent multi-chain launches.<br>- <strong>Market Liquidity:</strong> Provide liquidity on decentralized and centralized exchanges to support healthy trading volumes.</p>                       |
| **Team & Advisors**                           | **10%**            | 100,000,000 | <p>- <strong>Incentivization:</strong> Reward the founding team and advisors for their expertise and long-term commitment.<br>- <strong>Vesting:</strong> Implement a 4-year vesting schedule with a 12-month cliff to align interests with long-term ecosystem growth.</p>                           |
| **Strategic Partnerships & Ecosystem Growth** | **15%**            | 150,000,000 | <p>- <strong>Collaborations:</strong> Incentivize partnerships with industry leaders in entertainment, sports, biomedical, and real estate.<br>- <strong>Joint Ventures & Co-investments:</strong> Support initiatives that expand the ecosystem’s reach and drive innovative integrations.</p>       |
| **Reserve & Treasury**                        | **5%**             | 50,000,000  | <p>- <strong>Contingency Funds:</strong> Maintain a reserve to navigate market volatility, seize new opportunities, and support unforeseen strategic pivots.<br>- <strong>Future Funding:</strong> Ensure funds are available for subsequent R\&D and ecosystem expansion phases.</p>                 |
| **Staking & Reward Pools**                    | **10%**            | 100,000,000 | <p>- <strong>Staking Rewards:</strong> Encourage long-term holding and network security with competitive staking yields.<br>- <strong>Liquidity Mining:</strong> Attract early adopters and ensure a vibrant market by allocating rewards for liquidity providers and yield farming participants.</p> |

*Total: 100% of 1,000,000,000 WECO Tokens*

* Staking and Yield Farming:
  * Staking: Lock WECO tokens for governance privileges, earn a portion of platform fees.
  * Farming: Users providing liquidity to AMM pools (WECO/USDC, WECO/RWA token pairs) receive additional token incentives.

#### Governance & DAO Framework

1. Proposal Submission
   * Token holders can submit proposals (e.g., listing new assets, adjusting protocol fees, or integrating new AI features).<br>
2. Voting Mechanism
   * Weighted by tokens staked in governance contracts.
   * Options for quadratic voting or reputation-based weighting to prevent whale manipulation.<br>
3. Implementation
   * If a proposal passes, on-chain smart contracts automatically execute changes (where feasible) or instruct the core dev team to implement (e.g., for complex feature rollouts).


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