# Vexon Tokenomics And Treasury Policy

This document defines the first public allocation plan for VEX. It is intended
to make the project sustainable while keeping proof-of-work mining as the
primary distribution path.

VEX is a utility and settlement asset for mining infrastructure. This plan is
not a promise of price appreciation or investment return.

## Fixed Supply

Total supply:

```text
84,000,000 VEX
```

## Allocation

| Category | Share | Amount | Purpose |
| --- | ---: | ---: | --- |
| Mining rewards | 64% | 53,760,000 VEX | Proof-of-work distribution, network security, and miner rewards. |
| Project treasury | 21% | 17,640,000 VEX | Long-term operating support for servers, development, wallet and pool maintenance, audits, legal work, listings, liquidity infrastructure, and public services. |
| Core contributors | 8% | 6,720,000 VEX | Long-term incentives for core development, operations, and security contributors. |
| Liquidity and infrastructure | 4% | 3,360,000 VEX | Exchange readiness, market infrastructure, bridge liquidity, and operational settlement reserves. |
| Security and compliance | 2% | 1,680,000 VEX | Security reviews, bug bounties, incident response, legal work, and risk controls. |
| Community launch | 1% | 840,000 VEX | Node operators, early miners, documentation contributors, and community activation programs. |

## Chain Implementation

The public chain should not launch with a single hot-wallet premine. The
non-mining allocation should be written into the Vexon Core block-one ledger as
separate outputs controlled by separate offline wallets.

Launch distribution:

| Source | Amount | Implementation |
| --- | ---: | --- |
| Mining rewards | 53,760,000 VEX | Issued gradually by proof-of-work block rewards. The first reward is calibrated at `32.01904566 VEX` and halves every `840,000` blocks, about every four years at 150-second block spacing. |
| Block-one launch ledger | 30,240,000 VEX | Written once at block height 1 to the treasury, contributor, liquidity, security, and community reserve addresses below. |

The Vexon Core repository includes the release tooling:

```sh
cp scripts/vexon-tokenomics-addresses.example.env /private/path/vexon-tokenomics-addresses.env
$EDITOR /private/path/vexon-tokenomics-addresses.env
scripts/set-vexon-premine.sh --tokenomics /private/path/vexon-tokenomics-addresses.env
scripts/verify-vexon-tokenomics.sh
```

The filled address file must never be committed if it contains operational
notes or custody metadata. The public addresses themselves should be published
after launch for transparency.

Required block-one addresses:

| Address purpose | Amount |
| --- | ---: |
| Project treasury immediate reserve | 1,764,000 VEX |
| Project treasury long-term reserve | 15,876,000 VEX |
| Core contributor vesting reserve | 6,720,000 VEX |
| Liquidity and infrastructure reserve | 3,360,000 VEX |
| Security and compliance reserve | 1,680,000 VEX |
| Community launch reserve | 840,000 VEX |

Changing the block-one ledger or the subsidy schedule changes consensus. Do it
only before public launch, then rebuild and redeploy every Vexon node from the
same tagged source.

## Project Treasury

The project treasury exists to keep Vexon operational and maintainable. It
should be treated as operating capital, not as a private founder reserve.

Treasury allocation:

```text
21% of total supply = 17,640,000 VEX
```

Recommended release:

| Treasury bucket | Share of treasury | Amount | Release rule |
| --- | ---: | ---: | --- |
| Initial operating reserve | 10% | 1,764,000 VEX | Available for launch, server cost, tooling, emergency fixes, and listing preparation. |
| Long-term reserve | 90% | 15,876,000 VEX | Linear release over 48 months. |

Monthly long-term treasury release:

```text
15,876,000 VEX / 48 months = 330,750 VEX per month
```

Recommended maximum monthly market sale:

```text
0.3% of total supply = 252,000 VEX per month
```

If the project must exceed this cap for a major operational reason, the reason
should be published before execution when possible.

## Core Contributor Vesting

Core contributor incentives should use long-term vesting:

- 12-month cliff.
- 36-month linear vesting after the cliff.
- No immediate full unlock.
- Unvested allocations return to the contributor reserve if a contributor
  leaves before vesting.

This keeps contributors aligned with the network after launch instead of
front-loading rewards.

## Treasury Governance

The recommended governance path is:

1. Publish treasury addresses.
2. Move treasury custody to multisignature control as the signer group is ready.
3. Use a target of 3-of-5 multisig for major treasury reserves.
4. Publish monthly treasury reports that include:
   - opening balance
   - spending by category
   - transfers
   - closing balance
   - material operational notes
5. Keep wallet seeds, signing devices, and recovery material offline.

## Operating Budget Categories

The project treasury may support:

- Vexon Core and Vexon Wallet development.
- Vexon Pool operations and public infrastructure.
- Explorer, docs, website, API, and monitoring services.
- Security audits and bug bounty programs.
- Legal and compliance work.
- Exchange and liquidity infrastructure.
- Developer tooling, release packaging, and CI.
- Emergency incident response.
- Community, documentation, and node operator programs.

## Public Communication Rules

When discussing VEX supply or reserves:

- Say that mining is the main distribution path.
- Say that the treasury is capped and scheduled for operating support.
- Say that VEX is designed for mining infrastructure settlement.
- Do not promise price appreciation.
- Do not describe VEX as an investment product.
- Do not use treasury funds without records.

## Review Schedule

This policy should be reviewed before each major release and at least once per
quarter during the prelaunch and early mainnet period.

Any major allocation change should be documented in this file and reflected in
the public documentation website.
