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

# Tokenomics Breakdown

#### Token Allocation

The total supply of $ZIG tokens is capped at 800 million tokens. The allocation of these tokens is strategically designed to promote long term sustainability, community involvement and network growth. The distribution breakdown is as follows:

1. **Presale (60%)**
   * **Purpose**: The presale allocation is aimed at raising funds to develop the Zig Network infrastructure and ecosystem. This substantial allocation ensures that the project has the necessary resources for initial development, marketing and operational expenses.
2. **Rewards (15%)**
   * **Purpose**: This allocation is dedicated to the revenue sharing model and incentivizing user participation. Users holding $ZIG tokens will be eligible for regular rewards based on their holdings and engagement with the platform.
   * **Distribution Method**: Rewards will be distributed daily from the revenue generated through transaction fees, staking and other income sources. This ensures a continuous incentive for users to hold and participate in the ecosystem.
3. **Exchanges (12%)**
   * **Purpose**: This portion is set aside for liquidity on exchanges and to facilitate trading of $ZIG tokens. Ensuring adequate liquidity is crucial for the stability of the token’s value and ease of access for new investors.
   * **Liquidity Provision**: A portion of these tokens will be allocated to decentralized exchanges (DEXs) and centralized exchanges (CEXs) to establish initial liquidity pools, enabling smooth trading activities.
4. **Marketing (7%)**
   * **Purpose**: The marketing allocation is aimed at promoting the Zig Network and building brand awareness. This includes digital marketing campaigns, community engagement initiatives, and outreach efforts to potential users and developers.
   * **Implementation Strategy**: Funds will be allocated to strategic partnerships, advertising, content creation and hosting events to foster community involvement and attract new users to the platform.
5. **Team (4%)**
   * **Purpose**: This allocation compensates the founding team and early contributors for their efforts in building the Zig Network. It is crucial to ensure that the team is motivated and invested in the project’s success.
   * **Vesting Schedule**: To align the interests of the team with the long term growth of Zig Network, the team’s tokens will be subject to a vesting period of 4 years, with a 6 month cliff.
6. **Partnerships (2%)**
   * **Purpose**: This allocation is reserved for strategic partnerships and collaborations with other projects and organizations that align with the vision of Zig Network. These partnerships can enhance the network’s capabilities and reach.
   * **Usage**: Tokens may be used for joint marketing efforts, incentives for integrating with other platforms, or rewarding partners that contribute to the ecosystem.


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