# Token Distribution

## Emission Schedule

**Constant Rate Model**

* **Annual Emission:** 2.015 billion SIR per year (per chain)
* **Starting Supply:** Zero at launch
* **Distribution Frequency:** Continuous (every second)
* **Duration:** Perpetual (no end date)

**Phased Allocation Strategy**

Years 1-3: Bootstrap Phase During the initial three years, emissions support both protocol development and liquidity growth through diversified allocation.

Year 4+: Full Liquidity Focus After year three, <mark style="background-color:yellow;">**100% of emissions flow to liquidity providers**</mark>, ensuring sustainable long-term incentives.

## Ethereum Allocation (Years 1-3)

Following the protocol redesign after the March 2025 exploit, the emission breakdown for Ethereum is:

| Recipient                                                             | Allocation | Purpose                                                                                               |
| --------------------------------------------------------------------- | ---------- | ----------------------------------------------------------------------------------------------------- |
| <mark style="background-color:yellow;">**Liquidity Providers**</mark> | 56.13%     | Protocol liquidity incentives                                                                         |
| <mark style="background-color:blue;">**Team & Contributors**</mark>   | 13.65%     | Development and operations                                                                            |
| <mark style="background-color:purple;">**Hack Victims Fund**</mark>   | 12.00%     | [Compensation for losses](https://docs.sir.trading/protocol-overview/user-risks/exploit-and-relaunch) |
| <mark style="background-color:green;">**Protocol Treasury**</mark>    | 10.00%     | Strategic reserves & development                                                                      |
| <mark style="background-color:red;">**Presale Investors**</mark>      | 8.22%      | Early funding supporters                                                                              |

## HyperEVM Allocation (Years 1-3)

| Recipient                                                                                    | Allocation |
| -------------------------------------------------------------------------------------------- | ---------- |
| <mark style="background-color:yellow;">**Liquidity Providers**</mark>                        | 70%        |
| <mark style="background-color:orange;">**Previous SIR Holders, Users & Contributors**</mark> | 30%        |

## MegaETH Allocation (Years 1-3)

| Recipient                                                                                    | Allocation |
| -------------------------------------------------------------------------------------------- | ---------- |
| <mark style="background-color:yellow;">**Liquidity Providers**</mark>                        | 69%        |
| <mark style="background-color:orange;">**Previous SIR Holders, Users & Contributors**</mark> | 31%        |

## Original Ethereum Allocation (Pre-Exploit)

The initial protocol design allocated first three years' emissions as:

| Recipient                                                             | Allocation |
| --------------------------------------------------------------------- | ---------- |
| <mark style="background-color:yellow;">**Liquidity Providers**</mark> | 68.13%     |
| <mark style="background-color:blue;">**Team & Contributors**</mark>   | 13.65%     |
| <mark style="background-color:green;">**Protocol Treasury**</mark>    | 10.00%     |
| <mark style="background-color:red;">**Investors**</mark>              | 8.22%      |

## Strategic Rationale

**Liquidity First:** On every chain, the majority of emissions flows to LPers, ensuring deep liquidity from day one.

**Aligned Incentives:** Team and contributor allocations ensure long-term commitment while treasury reserves enable strategic flexibility.

**Fair Compensation:** On Ethereum, hack victims receive meaningful restitution without compromising protocol viability.

**Sustainable Transition:** After year three, all chains transition to 100% LP rewards, creating predictable long-term incentives. Protocol fees fund operations via SIR staking dividends.