# Tokenomics

## 1. Token Overview

The reward token is Avto ("**$AVTO**", or the “**Token**”). The token has a virtually unlimited emissions schedule, but reduces algorithmically per unit of time such that it approximates a max supply.

The Token bestows both governance and profit-sharing privileges to platform users, aka holder, by staking them in a framework of smart contracts (the “**Foundry**”).

The Token has a modified reflect/deflect feature in the form of a 2% tax on contract interactions. This tax is burned forever, adding a deflationary aspect to the Token.

## 2. Emissions Schedule

* Approximated max supply: 21,000,000 tokens
* Emission schedule expected to follow a sigmoid supply curve such that:
  * $$y = \frac{2\*z}{1 + e^{-x}}-z$$
  * Where:
    * y = circulating supply excluding pre-minted tokens
    * x = years (assuming 360 days a year)
    * z = max supply excluding pre-minted tokens

#### Annual Supply Curve / Emissions Schedule for Reward Emissions (excl. pre-minted tokens) <a href="#supply-curve--emissions-schedule-for-reward-emissions-excl.-pre-minted-tokens" id="supply-curve--emissions-schedule-for-reward-emissions-excl.-pre-minted-tokens"></a>

| x (Year) | y (Tokens) | % of z (max) | Tokens minted | Y-o-y change in emissions |
| -------- | ---------- | ------------ | ------------- | ------------------------- |
| 0        | 0          | 0.00%        | 0             | n/a                       |
| 1        | 5,822,676  | 46.21%       | +5,822,676    | n/a                       |
| 2        | 9,596,086  | 76.16%       | +3,773,410    | -35.19%                   |
| 3        | 11,404,868 | 90.51%       | +1,808,782    | -52.07%                   |
| 4        | 12,146,748 | 96.40%       | +741,880      | -58.98%                   |
| 5        | 12,431,340 | 98.66%       | +284,593      | -61.64%                   |
| 6        | 12,537,690 | 99.51%       | +106,350      | -62.63%                   |
| 7        | 12,577,042 | 99.82%       | +39,352       | -63.00%                   |
| 8        | 12,591,549 | 99.93%       | +14,508       | -63.13%                   |
| 9        | 12,596,890 | 99.98%       | +5,341        | -63.18%                   |
| 10       | 12,598,856 | 99.99%       | +1,966        | -63.20%                   |

Emissions follow the supply curve on a daily basis with the assumption of 24 hours in a day, 30 days in a month, and 12 months / 360 days in a year, with the per-block emissions within each 24-hour time span being a linear average.

After 10 years, we set the default case as flat emissions (i.e., +1,966 per year), to be subject to governance voting.

## 3. Allocations

As the emissions schedule generally approximate a max supply, token allocation is possible on a fully diluted basis. A portion of the Token will be pre-minted and allocated on day 1 while the remainder will be minted according to the emission schedule.

| Allocation                           | % of Max Supply | # of Tokens | Minting Method     |
| ------------------------------------ | --------------- | ----------- | ------------------ |
| Reward Emissions                     | 60%             | 12,600,000  | Emissions schedule |
| Initial Jetswap Offering ("**IJO**") | 10%             | 2,100,000   | Pre-minted         |
| Treasury                             | 20%             | 4,200,000   | Pre-minted         |
| Team Equity                          | 10%             | 2,100,000   | Pre-minted         |

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