# Tokenomics

### **Introduction**

MILK is the native token that powers the MilkyWay network, a Cosmos-based layer-1 blockchain known for its liquid staking and restaking capabilities. The security of MilkyWay network relies on MILK, which also serves as the main token for transactions, gas fees, and onchain liquidity. Its total supply is fixed at one billion tokens, with the distribution structured to foster long-term incentives, ecosystem support, and early participation.

### **Release Schedule**

Vesting and unlocks follow either a monthly or linear release cycle. The structure is designed to prioritize sustainability and alignment across users, contributors, and partner networks.

<figure><img src="https://1087804699-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FT6Wgr8BgShgIJFRJxrB3%2Fuploads%2FQvFWNNYuejxVtQqaOWzf%2Fimage.png?alt=media&#x26;token=410af85a-d23d-46a6-a08d-65c459368f3e" alt=""><figcaption></figcaption></figure>

### **Supply and Distribution**

There is a total 1,000,000,000 MILK tokens in existence. This fixed total ensures the token supply will not expand beyond planned vesting schedules or inflation schemes. To align with community growth and the protocol’s needs, MILK tokens are allocated across multiple categories, each with specific lockups and release timelines.

<figure><img src="https://1087804699-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FT6Wgr8BgShgIJFRJxrB3%2Fuploads%2FwTA8r5oURnvSPVzRUPmT%2Fimage.png?alt=media&#x26;token=2175d8e3-3da4-4a22-823c-e85154308386" alt=""><figcaption></figcaption></figure>

#### **Core Contributors**

* 200,000,000 MILK (20.00%) reserved for the founding team, contributors, and future hires. Locked for 12 months, then released linearly over the following 36 months.

**Early Private Round Investors**

* 134,200,000 MILK (13.42%) allocated to strategic backers from the early stages of MilkyWay. These tokens are locked for 12 months, followed by 24 months of monthly vesting.

**Early Supporters**

* 35,500,000 MILK (3.55%) for advisors and contributors from the early build phase. Locked for 12 months and 36-month monthly release schedule.

**Foundation**

* 80,000,000 MILK (8.00%) supports DeFi integrations, AVS onboarding, rollup deployments, and other strategic uses. 2% is unlocked at launch, with the remainder vesting over 36 months.

**Community Round**

* 52,500,000 MILK (5.25%) allocated to participants from community-based allocations, including Echo. Locked for 12 months, then unlocked monthly over 12 months.

**Binance Exclusive TGE**

* 20,000,000 MILK (2.00%) allocated for the Exclusive Token Generation Event on Binance Wallet via Pancake Swap. Fully unlocked at launch.

**Binance Web3 Wallet Marketing**

* 20,000,000 MILK (2.00%) to be allocated to future marketing campaigns by Binance Wallet. Further details will be announced separately.

**Ecosystem Growth**

* 165,000,000 MILK (16.50%) used to support AVS integrations, rollup incentives, developer grants, and liquidity programs. 6.25% is unlocked at launch, with the rest vesting over 36 months.

**Massdrop**

* 100,000,000 MILK (10.00%) allocated to early users including mPoint holders, Moolitia NFT holders, and milkINIT testers. Released in four phase

**Community Growth**

* 192,800,000 MILK (19.28%) supports campaigns, partnerships, and long-term incentive programs. 9.64% is unlocked at launch, with the rest vesting over 36 months.

### Inflation & Emission

MILK’s initial supply of 1,000,000,000 is set to reach a capped maximum of 1,200,000,000 over 5 years, following a gradually decreasing inflation schedule:

* **Year 1:** 7.00% → 70,000,000 MILK
* **Year 2:** 5.20% → 52,000,000 MILK
* **Year 3:** 3.90% → 39,000,000 MILK
* **Year 4:** 2.60% → 26,000,000 MILK
* **Year 5:** 1.30% → 13,000,000 MILK

Inflation tapers off each year to promote long-term sustainability and reduce dilution.

### **Potential Model Adjustments**

The initial tokenomics are subject to refinement by the MilkyWay Foundation as the protocol evolves. Should adjustments become necessary, the foundation retains full authority to implement changes that align with evolving technical or market requirements. This flexibility enables MilkyWay to adapt and maintain a balanced token economy over time.
