# Tokenomics

Kura distributes emissions through a vote-directed gauge system, enabling token holders to influence where rewards are allocated.

## Breakdown

* **Initial Supply** : 3M
  * Released and distributed according to the Initial Token Supply & Distribution.
* **Max Supply** : 10M
  * Released gradually over 7 years as defined in Emission Mechanics.
    * Emissions decrease slightly with each epoch, gradually approaching zero over time.
* **Total Token Supply & Distribution**

<table><thead><tr><th width="337.296875">Token Distribution</th><th align="center">% of Supply</th><th align="center">Amount</th></tr></thead><tbody><tr><td>Community Incentives</td><td align="center">66.74%</td><td align="center">6,674,000</td></tr><tr><td>Marketing &#x26; Ecosystem</td><td align="center">17.96%</td><td align="center">1,796,000</td></tr><tr><td>Liquidity &#x26; Reserve: Liquidity</td><td align="center">1.8%</td><td align="center">180,000</td></tr><tr><td>Liquidity &#x26; Reserve: Reserves</td><td align="center">3%</td><td align="center">300,000</td></tr><tr><td>Liquidity &#x26; Reserve: Triggered Release</td><td align="center">3%</td><td align="center">300,000</td></tr><tr><td>Liquidity &#x26; Reserve: Treasury</td><td align="center">4.5%</td><td align="center">450,000</td></tr><tr><td>Liquidity &#x26; Reserve: Team</td><td align="center">3%</td><td align="center">300,000</td></tr></tbody></table>

* **Token Emissions**

<figure><img src="https://2291520555-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FEM9y4hG53kstwFptnd9e%2Fuploads%2F9xU1fnp2xIsmBTyVzv7F%2Fdocs-003.png?alt=media&#x26;token=71f6e480-f4e5-47e8-aa88-db756bfb5c33" alt="" width="563"><figcaption></figcaption></figure>

## Initial Token Supply & Distribution

<table><thead><tr><th width="285.3671875">Token Distribution</th><th width="248.49609375" align="center">% of Supply</th><th align="center">Amount</th></tr></thead><tbody><tr><td>Community Incentives</td><td align="center">35.8%</td><td align="center">1,074,000</td></tr><tr><td>Marketing &#x26; Ecosystem</td><td align="center">13.2%</td><td align="center">396,000</td></tr><tr><td>Liquidity</td><td align="center">6%</td><td align="center">180,000</td></tr><tr><td>Reserves</td><td align="center">10%</td><td align="center">300,000</td></tr><tr><td>Triggered Release</td><td align="center">10%</td><td align="center">300,000</td></tr><tr><td>Treasury</td><td align="center">15%</td><td align="center">450,000</td></tr><tr><td>Team</td><td align="center">10%</td><td align="center">300,000</td></tr></tbody></table>

* All allocations are in xKURA, except Liquidity, Triggered Release, and Reserves.
* Team & Treasury have a 3-month lockup and 4-year vesting.

## Triggered Release

* A fixed amount of KURA is pre-supplied to the SEI-KURA pool. Upon reaching a predefined exchange rate, the tokens are converted to SEI, and the corresponding liquidity is removed.
* Accordingly, distribution occurs only upon reaching specific milestones.

<figure><img src="https://2291520555-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FEM9y4hG53kstwFptnd9e%2Fuploads%2FXsIaU6wQSabWjtfqqQEw%2Fdocs-005.png?alt=media&#x26;token=2995d1b4-5b39-45f7-8241-f3af7333ede5" alt="" width="563"><figcaption></figcaption></figure>

## Emission Mechanics

* **Epoch Timing** : New emission cycles begin every Thursday at 15:00 UTC
* **Vote-Based Allocation** : Emissions are directed by xKURA voters
* **Decay Schedule** : Emission rate decreases gradually over time to manage supply inflation
* **Allocation** : 100% of new emissions are allocated to liquidity providers
* **Emission Variability** : Emissions may vary by ±20% per epoch, depending on market dynamics.

{% hint style="success" %}
This mechanism ensures that only actively supported pools receive sustained incentives.
{% endhint %}
