# 08 tokenomics Token economic design is the value foundation of a blockchain project. Auvin Chain assigns its native token AUV a clear and rigid identity—the sole Gas token across the entire ecosystem. Through a Buy-to-Burn deflationary mechanism, AUV's value is backed by real usage demand rather than speculative sentiment. ## 8.1 AUV Token Positioning AUV is the sole fuel of the entire Auvera Chain economic system. Every on-chain transaction, every interaction, every operation—is priced and consumed in AUV. AUV is not one of many ecosystem tokens; it is the core token running through all scenarios, serving three core functions: | Function | Description | | -------------------- | ------------------------------------------------------------------------------------------------------------------------------------------- | | **Gas Token** | Fuel for all on-chain operations including transfers, contract calls, DEX trades, and staking | | **Governance Token** | Lock AUV to obtain veAUV (vote-escrowed AUV), participating in Ve(3,3) DEX liquidity incentive allocation voting | | **Value Store** | Deflationary mechanism drives token value appreciation alongside ecosystem growth—holding AUV equates to holding ecosystem growth dividends | ## 8.2 On-Chain Consumption and Gas Payment AUV serves as the sole Gas token for all on-chain operations on Auvera Chain. Specifically: ### Table 8-1: AUV On-Chain Consumption Scenarios | Operation Type | Gas Usage | | ------------------------------- | -------------------------------------------------------------------- | | **Basic Transfer** | AUV token transfers between addresses | | **Contract Call** | Interacting with Smart Contracts (DEX trades, staking, voting, etc.) | | **AI Agent Operation** | Agent identity registration, payment execution, strategy invocation | | **Cross-Chain Transfer** | Asset cross-chain transfers via the ZK+TSS bridge | | **Prediction Market Trading** | Order creation, event betting, settlement payouts | | **Compute Network Interaction** | Compute task publishing, result submission, reward distribution | All on-chain operations incur Gas fees paid in AUV—this is the most fundamental and core use case for AUV. As on-chain ecosystem applications grow richer and user scale expands, Gas consumption will continuously create real on-chain demand for AUV. ## 8.3 Deflationary Mechanism Auvin Chain implements a Buy-to-Burn deflationary mechanism. On-chain consumed AUV tokens are directly sent to a burn address (an address without a private key) for permanent destruction. **Burn Process:** 1. Users pay AUV as Gas fees for on-chain operations 2. Gas fee AUV is immediately sent to the burn address for destruction 3. Not held by the team after buyback, not locked for later release—true permanent destruction, completely eliminated from circulating supply 4. The burn address has no private key; no one, including the team, can extract tokens from it 5. Burn quantity is calculable, verifiable, and irreversible **Supply Shock and Value Spiral:** ``` +---------------------------------------------------------------+ | AUV Deflationary Flywheel | +---------------------------------------------------------------+ | | | +----------------+ | | | Users operate | | | | on-chain | | | +--------+-------+ | | | | | v | | +----------------+ | | | Purchase AUV | | | +--------+-------+ | | | | | v | | +----------------+ +------------------------------+ | | | Burn to void | | Circulating supply decreases | | | | (black hole) +---> +------------------------------+ | | +----------------+ +----------+-----------+ | | | | | v | | +------------------------+ | | | Supply-demand imbalance| | | +----------+-------------+ | | | | | v | | +------------------------+ | | | Price support | | | +----------+-------------+ | | | | | v | | +------------------------+ | | | More users join +----+ | | +------------------------+ | | | | | | +------------------------+ | | | (Cycles back to more | | | | on-chain operations) | | | +------------------------+ | +---------------------------------------------------------------+ ``` *Figure 8-1: AUV Deflationary Flywheel* This deflationary flywheel has self-reinforcing characteristics: * Burn quantity is proportional to ecosystem usage—more usage means more burns * Total token supply has a hard cap (coded in Smart Contracts), while circulating supply only has a lower bound (continuous burns) * Faster ecosystem growth means faster burn rate and stronger deflationary pressure * AUV's value is backed by real demand rather than market sentiment, providing stronger resilience against volatility ## 8.4 Token Allocation ### Table 8-2: AUV Token Allocation | Category | Percentage | Description | | ------------------------------------------ | ---------- | ------------------------------------------------------------------------ | | **Gauge Emissions (Liquidity Incentives)** | 65.44% | For Ve(3,3) DEX liquidity mining incentives, released per emission curve | | **Airdrop** | 10.17% | Early user and community airdrop to incentivize ecosystem participants | | **Foundation + Team** | 8.61% | Long-term lockup, linear vesting, aligning team interests with project | | **Rebase (Anti-Dilution)** | 5.37% | Protects long-term veAUV holders from emission dilution | | **Ecosystem and Public Goods** | 5.34% | Developer Grants, ecosystem building, public goods funding | | **Protocol Grants** | 2.54% | Protocol launch funding for initial development and operations | | **Voter Incentives** | 2.03% | Incentivizes Gauge voting participation, boosting governance activity | | **Genesis Liquidity Pool** | 0.51% | Initial liquidity bootstrap ensuring DEX trading depth at launch | --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. 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